In the second quarter, domestic lithium carbonate prices experienced a V-shaped rebound and then traded in a high-range volatile pattern. The market maintained a tight balance between supply disruptions and resilient demand, with price sensitivity notably heightened. I. Market Performance: Wide Fluctuations with Rising Price Sensitivity In April, prices first fell then rose: early in the month, geopolitical disturbances in the Middle East dragged battery-grade lithium carbonate down to 155,500 yuan/ton; by mid-to-late April, Zimbabwe’s export ban, mining permit renewals in Jiangxi, and rising costs pushed prices back up, ending the month at 177,000 yuan/ton. The monthly average price rose 6% month-on-month. In May, prices trended upward with a monthly average increase of 12%, and the futures main contract briefly broke through RMB 200,000/ton, as time mismatches between supply and demand persisted. In June, record-high import volumes and GFEX stocks remaining at 50,000 tons, combined with fully priced-in demand expectations, pulled the price center lower. Downstream buyers accumulated large inventories at levels below 160,000 yuan/ton. II. Policy Environment: Dual Drivers from Mandatory Recycling Rules and Rigid Energy Storage Targets On April 1, the Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles took effect, mandating "integrated vehicle-battery scrap page" and requiring a lithium recovery rate of no less than 85%. This shifts recycling from "encouragement and guidance" to "mandatory compliance," boosting long-term resource circularity. On June 25, the 15th Five-Year Plan for the Construction of a New Energy System set a target of 300 GW of new energy storage installed capacity by 2030, representing over 120% cumulative growth in five years. This elevates energy storage from "optional" to "essential," providing rigid support for lithium demand. III. Supply Side: Steady Release with Structural Disruptions Domestic production maintained a stable pace in Q2, with salt lake ramp-ups and recycling additions pushing monthly output above 107,000 tons and edging higher. External disruptions such as Zimbabwe’s export ban did not significantly impact production, as companies held ample raw material inventories. The inventory pattern shifted from "demand-driven destocking" to "structural volatility underprice bargaining". A declining proportion of long-term contracts exacerbated spot-market fluctuations, with upstream producers firm on prices and downstream buyers cautious in procurement, while traders became the primary buffer. The market entered a high-price-sensitivity tight-balance state. Conclusions In Q2, lithium carbonate prices first rose then corrected, supported by supply disruptions and high production schedules, while record imports and warehouse receipt pressure weighed on June prices. On the policy front, new recycling rules and energy storage targets provide medium-to-long-term support. Supply growth remained relatively stable but with frequent disturbances, and upstream-downstream bargaining deepened. In the short term, the market remains in a high-level tight balance.

[General Administration of Customs: In the first seven months of this year, China’s exports of mechanical and electrical products totalled 11.12 trillion yuan, up 21.2 per cent] Data from the General Administration of Customs shows that in the first seven months of this year, China’s exports of mechanical and electrical products totalled 11.12 trillion yuan, representing a 21.2 per cent increase. This accounted for 63.8 per cent of China’s total exports, an increase of 3.8 percentage points compared with the same period last year. Among these, green and low-carbon products such as electric vehicles, lithium-ion batteries and wind turbines grew by 71.2 per cent, 35.8 per cent and 34.8 per cent respectively. Exports of 3D printers, industrial robots and ships amounted to 11.2 billion yuan, 7.34 billion yuan and 268.14 billion yuan respectively, representing increases of 110 per cent, 13.2 per cent and 32.7 per cent.

[Electricity Consumption in the Nine Mainland Cities of the Guangdong-Hong Kong-Macao Greater Bay Area Hits Record High in First Half of the Year] According to China Southern Power Grid, electricity consumption in the nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area reached 304.4 billion kilowatt-hours in the first half of 2026, an increase of 8.1 per cent year-on-year, setting a new historical high for the same period. Three key growth drivers—high-end manufacturing, digital computing power and the resilience of foreign trade—were clearly evident, with electricity data and high-frequency economic indicators moving in tandem, signalling a simultaneous improvement in the quality and efficiency of the regional economy. Data shows that the industrial electricity consumption structure in the nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area during the first half of the year exhibited a marked ‘contrast between rising and falling sectors’: electricity consumption in high-tech equipment manufacturing grew by 8.6 per cent, whilst that in energy-intensive industries fell by 4.8 per cent, with the pace of transition from old to new growth drivers continuing to accelerate. High-end manufacturing has become the core pillar of industrial electricity consumption, with consumption rising across the board in the automotive, specialised equipment and electronics manufacturing sectors. Notably, Guangzhou’s new energy industry has demonstrated remarkable momentum; in the first half of this year, electricity consumption in the local automotive manufacturing sector rose steadily, whilst new energy vehicle production from January to June surged by 53.2 per cent year-on-year. This directly drove rapid growth in the added value of upstream and downstream industries—lithium-ion batteries and smart in-vehicle equipment—by 53.9 per cent and 40.6 per cent respectively, establishing the new energy industrial chain as a stabilising force for the sector.

“ In the critical period of global energy transition and the reshaping of the manufacturing landscape, the lead-zinc industry chain is undergoing profound structural adjustments. Upstream mine resources remained tight continuously, smelting and processing profits were under pressure, while downstream application fields represented by batteries and galvanizing faced opportunities and challenges from new technology iterations and green low-carbon transformation. Against this backdrop, collaboration and price risk management across the industry chain are more important than ever before. SMM deeply insights into industry needs and dedicates to creating a unique industry conference. This conference will focus on downstream applications and long-term contract supply-demand matching, aiming to build a high-end communication platform integrating macro outlook, price analysis, and long-term contract negotiations. The conference will not only analyze in depth the market trends of lead, zinc, precious metals, copper, tin, antimony, bismuth, and other associated metals, but also innovatively set up a long-term contract supply-demand negotiation meeting as a highlight, striving to help clients seize market opportunities in 2027 and foster business cooperation through precise data services and practical agenda design. In the golden autumn of October, we sincerely invite leading enterprises and elites of the lead-zinc industry chain from China and overseas to gather together, to have open exchanges and seek common development in a relaxed and pleasant negotiation atmosphere! Nandan County Zhenghua Non-Ferrous Metals Company will attend this grand event, discussing industry development trends with industry peers and jointly promoting the lead-zinc industry to a new height. Click on the to register immediately, and join us to witness and participate in this significant and far-reaching industry event, creating a new chapter of brilliance together! Nandan County Zhenghua Non-Ferrous Metals Company was founded in 2000, with a history of over 20 years. Located at Xiaoping Tun, Daping Village, Chehe Town, Nandan County (within Hechi-Nandan Non-Ferrous Metal New Material Industrial Park), the company is mainly engaged in non-ferrous metal rolling and processing. It completed construction of a lead-antimony smelting production process using the advanced "oxygen-enriched bottom side-blowing bath smelting-oxidation-reduction fuming triple furnace—smelting flue gas double conversion and double absorption acid-making" technology to process antimony-lead concentrates, gold-antimony ore, and comprehensively recover gold, silver, copper, and bismuth, and has a complete antimony industry chain deep processing enterprise. Designed total metal capacity is 45,000 mt/year, including antimony ingot (10,000 mt/year), antimony trioxide (10,000 mt/year), lead ingot (25,000 mt/year), silver ingot (100 mt), gold ingot (2 mt), sulfuric acid (60,000 mt), and comprehensive recovery of other valuable metals. Total investment is 850 million yuan, covering a total area of 172 mu. The company has obtained certifications for quality management system, environmental management system, occupational health and safety management system, and energy management system from the national quality certification center, and has been rated as a Guangxi S&T enterprise, high-tech enterprise, specialized and sophisticated enterprise, enterprise technical center, gazelle enterprise, and national-level green factory. Zhenghua Nonferrous Metals Co., Ltd. has a group of experienced and skilled management personnel, technical personnel, and operators, forming an excellent management team with high enforcement capability. The company has departments such as Office, Production Department, Safety and Environmental Protection Department, Finance Department, Operations Department, Logistics Department, Engineering Department, and Electrical and Mechanical Section, with over 400 employees, including 60 professional and technical personnel. Over the years, with the care and support from Party committees and governments at all levels, peers in the industry, and people from all walks of life, Zhenghua Company has been committed to the concepts of safe production, circular economy, green development, honest operation, and win-win cooperation, dedicated to serving users wholeheartedly, committed to gathering talents and building a first-class management team, and striving to advance towards the goal of "10 billion Zhenghua". Contact Information zhenghuayelian@163.com Long Press to Scan and Sign Up Now 2026 SMM Lead-Zinc Annual Conference

This week, industry chain prices diverged. Lithium ore edged down alongside lithium carbonate, but mines continued to hold prices firm, making profit distribution across the industry chain a market focus. Supported by maintenance and tight spot order supply, lithium carbonate prices consolidated on a subdued note, while lithium hydroxide prices initially fell before rebounding. The cobalt industry chain remained generally under pressure—with weakening overseas quotations and sluggish off-season demand, refined cobalt, intermediate products, and cobalt salt prices continued to weaken, and the price spread between buyers and sellers widened. Nickel sulphate edged down, with the market still primarily focused on destocking; ternary cathode precursor prices declined due to weaker nickel and cobalt salt prices, while ternary cathode material prices remained basically stable. LFP prices proved resilient, supported by rising processing fees, with August production schedules continuing to grow and high-quality capacity remaining tight. Artificial graphite prices rose, the supply-demand balance for separators stayed in tight balance, and electrolyte prices were pushed up by raw material cost transmission. Supply of key materials for sodium-ion batteries remained tight, while recycling-side transactions were subdued. On the terminal side, EV and ESS demand maintained resilience, though the consumer market recovery remained limited. Looking ahead, the focus will be on peak season stockpiling and demand realization.

On July 30, 2026, the Ministry of Industry and Information Technology (MIIT) issued Announcement No. 20 of 2026, officially repealing all provisions related to "echelon utilization" under the Industry Norm Conditions for Comprehensive Utilization of Spent Power Batteries from New Energy Vehicles (2024 Edition), and removing all 100 previously certified "echelon utilization" enterprises from the list of compliant entities.