CGS has released a research report stating that China's nonferrous metals industry is expected to maintain steadfast development during the "15th Five-Year Plan" period, focusing on core areas such as resource security, technological innovation, green transformation, and industrial upgrading. Key recommendations include:

1) **Enhancing Mineral Resource Security**: Companies benefiting from accelerated development of critical mineral resources should be prioritized to strengthen supply chain resilience. 2) **High-Quality Industrial Development**: Focus should be placed on enterprises gaining from breakthroughs in advanced materials, particularly those in AI computing power (boosting demand for soft magnetic metal powder in chip inductors) and solid-state battery industrialization (benefiting upstream lithium sulfide and metallic lithium material suppliers).

### Strengthening Strategic Mineral Resource Development The nonferrous metals industry, positioned upstream in the national economy, supplies critical raw materials for manufacturing and underpins economic stability. Ensuring resource security has gained strategic importance: - The "14th Five-Year Plan" emphasized enhancing domestic mineral resource reserves. - The 2022 Party Congress report elevated resource security as a national priority. - The 2024 Third Plenum called for improving supply chain resilience and strategic mineral resource systems. - The revised *Mineral Resources Law* (2024) prioritized legal safeguards for resource security.

Given rising external dependencies, accelerating the development of copper, aluminum, lithium, nickel, cobalt, and tin resources will be pivotal during the "15th Five-Year Plan."

### Advancing New Material Innovation Technological innovation remains central to industrial upgrading: - The "13th Five-Year Plan" targeted high-end materials like lightweight alloys and electronic metals. - The "14th Five-Year Plan" aimed at breakthroughs in high-strength aluminum alloys and rare metals. - The "15th Five-Year Plan" draft highlights emerging industries, urging decisive progress in advanced materials (e.g., AI chip soft magnetic powders, solid-state battery electrolytes, lightweight robotics alloys, and aerospace titanium).

These efforts aim to transition China from a "material producer" to a "material innovator," bolstering global competitiveness.

### Risks 1) Slower-than-expected domestic economic recovery. 2) Delayed Fed rate cuts. 3) Sharp declines in nonferrous metal prices. 4) Escalating U.S.-China tensions.