The domestic EV market is currently in a phase of concentrated stockpiling for new models, with orders rebounding notably.

The 2026 SMM Hong Kong Metals Forum , organized by Shanghai Metals Market (SMM) and sponsored by China Securities International as platinum sponsor, wrapped up successfully at Novotel Hong Kong Century on May 6. With over 300 registrations and 200 on-site attendees, the forum focused on the theme "New Metals Cycle: Prices, Power & Global Wrestling". The event featured keynote speeches by industry experts and SMM analysts, covering base metals, new energy materials, and strategic revaluation of minor and precious metals. Two high-level panel sessions were held, exploring hot topics such as geopolitics, supply-demand fluctuations, CBAM impacts, and market opportunities. It also served as an efficient platform for networking and cooperation across entire industry chains. SMM Opening Address SMM Chairman Adam Fan SMM Chairman Adam Fan stated in the opening address that it was a great honor to gather with elites from all sectors of the industry at this forum. The world is currently at a critical development period, and the exchange of industry ideas is not only an industry necessity but also an inevitable requirement for global development. Adam reviewed the century-long legacy of the London Metal Exchange, which has weathered nearly 150 years of global changes and industry evolution, fully demonstrating that although market structures may change, the fundamental need for risk management and reliable price discovery remains constant. At the same time, Adam candidly acknowledged that global markets are currently mired in a pattern of deep fluctuations. Geopolitical conflicts, supply chain fragmentation, and the compounding crises of energy and food, overlaid with de-globalization and rising trade protectionism, have intensified market uncertainty and inflationary pressures, posing severe challenges to global economic growth and industrial cooperation. Against this backdrop, SMM has steadfastly upheld its mission, refusing to be a bystander to the trend of industry fragmentation, and is committed to serving as a bridge for global industrial connectivity amid a landscape of division. SMM is dedicated to promoting dialogue and exchange, breaking down industry and regional barriers, and bringing together regulators, traders, and producers from around the world to discuss industry development. SMM upholds the principle of information transparency, continuously providing accurate, real-time market data to help the industry see through market fog and clarify market distortions. SMM deepens pragmatic cooperation by building a neutral and professional platform for exchange and matchmaking, driving all parties to pursue collaborative development based on shared interests and transcending political differences. Adam emphasized that information sharing and open collaboration would be leveraged to mitigate market risks and strengthen overall industry resilience, and called on the industry to seize the opportunity of this forum to jointly explore solutions, transforming current challenges into momentum for driving integrated and robust development of the global metals industry. Speech by Platinum Sponsor Wang Guangxue, Member of the Executive Committee of China Securities Co., Ltd. and Chairman of China Securities Futures Co., Ltd. Wang stated that as a vital bridge connecting the capital market and the real economy, China Securities has always been committed to serving the high-quality development of the metals industry. Leveraging the comprehensive financial strengths of CITIC Group, the company has built a full-chain integrated service system covering securities, futures, investment, and research. The company has been deeply engaged in the commodities sector, continuously providing forward-looking research to anticipate market trends, utilizing futures instruments to build robust risk barriers, and empowering industrial upgrading through capital services. It will fully leverage CITIC Group's full-license resource advantages and the strategic value of Hong Kong as an international financial center to continuously strengthen its cross-border comprehensive financial services capabilities. The company aims to tailor integrated risk management and asset allocation solutions at home and abroad for enterprises across the metals industry chain, precisely helping enterprises hedge against price fluctuation risks, and enabling them to operate steadily and advance with high quality in complex market environments. Structural Shifts: Rethinking Commodity Benchmarks in an Era of Persistent Inflation and Rivalry Speaker: Tian Yaxiong, Co-Head of R&D Department, China Securities Futures Tian shared professional research findings and cutting-edge market insights on hot topics including the market outlook for global metals and the deep impact of geopolitics on commodity trends. SMM Industry Analysis: Market Outlook and Pre-seminar Sharing for Base Metals and New Energy Materials (Copper, Aluminum, Nickel, Cobalt, Lithium, and Tin) & How SMM Empowers Your Commodity Trading & Analysis Speakers: Dr. Yanchen Wang, Managing Director of SMM Global UK Ltd.; Thomas Feng, Head of Industry Analysis at SMM Dr. Wang first analyzed the macroeconomic landscape. At the beginning of this year, the manufacturing PMIs of major economies performed quite well, actually exceeding 50%. Without the conflict, demand this year would have been quite strong. However, at the end of February, the US-Iran conflict broke out, and the International Monetary Fund subsequently revised down its global economic growth expectations. He pointed out that China's exports remain one of the three pillars that are still functioning well to date. Regarding automobile consumption, he noted that for the EV market, the positive factor for the auto industry also lies in exports. In Q1 this year, export performance was indeed very strong. If you look at EV exports alone, they actually grew nearly 160% YoY. Driven mainly by growth in global markets, he remains optimistic about the auto industry this year. In Europe, gasoline and diesel prices have risen significantly due to the US-Iran conflict, and EV demand is expected to benefit from this factor. He believes the power sector continues to maintain strong growth. Based on power grid and power generation investment data from the first two months, combined with State Grid Corporation of China's earlier announcement that fixed asset investment during the "15th Five-Year Plan" period is expected to reach 4 trillion yuan, this indicates that electricity demand will drive strong growth. State Grid Corporation of China will build more ultra-high voltage transmission projects, which will undoubtedly support aluminum demand and also copper demand. Aluminum: Wang noted that base metal prices experienced wild swings since the beginning of this year. He also discussed that China's aluminum smelters continued to raise operating rates due to favorable profitability; aluminum demand pulled back in Q1, and high prices drove inventory higher; approximately 950,000 mt of new aluminum smelting capacity in Indonesia may come online in 2026, with some investors watching Angola; and aluminum semis and wheel hub exports maintained growth in Q1. Copper: After copper prices experienced a pullback and adjustment in March, downstream procurement demand in China was rapidly released, providing strong support for copper prices to rebound. Copper prices rose sharply, with the market downplaying geopolitical risks. China's copper cathode demand was robust, and inventory continued to decline. China's copper scrap market was not truly facing a spot shortage issue. The outlook for copper cathode demand is positive. China remains dependent on copper concentrate imports. Spot copper concentrate TCs showed no signs of bottoming out. By-product revenue sustained smelter profits. He also analyzed the DRC sulphuric acid market conditions, the expected slowdown in global refined production growth, and how a refined market supply deficit should support higher copper prices. He also mentioned that the AI industry maintained strong development momentum, bringing new growth momentum to copper demand. Tin: He elaborated from the following perspectives: Myanmar tin production — slow recovery, upward trajectory, 2025-2027E; Indonesia tin ore RKAB quotas — expected to ease slightly in 2026; DRC — major mine production remained stable, but the M23 movement added uncertainty; global tin prices — supply determines the floor, macro factors drive fluctuations; the global tin market is expected to maintain a tight balance, with new mining capacity expected to be concentrated for release in 2028. Thomas Feng shared insights on nickel, cobalt, and lithium: emerging from the trough and entering a new cycle. ►New energy demand landscape: from EV popularization to energy storage deployment. First, he reviewed and provided an outlook on the global NEV market: NEV demand no longer maintains a one-sided high-growth trajectory, but instead exhibits characteristics of regional differentiation, structural divergence, and intensifying cyclical volatility; development paces in China, Europe, and the US have shown notable differences; performance trends of BEVs, PHEVs, and commercial vehicles have diverged; and the impact of inventory and price cycles on industry operations is increasing significantly. Second, in his review and outlook of the global energy storage market, he noted that the global energy storage market will remain concentrated in three key regions: China, the US, and Europe. Driven by 2030 climate goals, emerging markets such as the Middle East, Australia, and Southeast Asia are showing strong growth in demand for large-scale energy storage. Benefiting from cost advantages and improved safety performance, LFP battery market share is expected to continue climbing. ►Lithium: Reshaping the Supply-Demand Pattern in a New Cycle Global lithium carbonate market: shifting from overall surplus to structural tightness, with prices in a post-trough reassessment and recovery phase. Lithium hydroxide supply and demand maintained a tight balance: production on the supply side was driven by demand, the market share of ternary power batteries was squeezed, and room for growth was limited. The concentration of lithium resource supply declined, with marginal growth rates slowing down simultaneously. Significant demand growth drove the continued expansion of resource projects. ►Nickel: Navigating Policy Changes and Narrowing Oversupply Indonesia's nickel ore HPM adjustment: aimed at enhancing the economic value of non-nickel resources. The discussion covered scenario analysis of nickel ore prices following the implementation of the new policy, and the impact analysis of nickel ore benchmark price adjustments on MHP full costs. Indonesia's nickel ore RKAB quota: a tight balance is expected to set the tone for 2026. Global primary nickel is expected to remain in persistent oversupply. Regarding the logic behind refined nickel price trends, it was noted that policy and macro factors jointly amplified price fluctuations, while cost support elevated the long-term price floor. ►Cobalt: Shifting from Surplus to Shortage after the DRC Export Ban——Long-Term Uncertainty Remains Following the DRC policy announcement, cobalt product prices in China rose rapidly. However, high prices suppressed downstream demand, putting prices under pressure. Starting from H2 2025, the Chinese market continued destocking. Amid raw material shortages, enterprises began using MHP and recycled materials as production substitutes. MHP and recycling are expected to continue growing rapidly, effectively bridging the cobalt hydroxide gap. Cost pressure transmitted in both directions: LCO doping/ternary substitution restarted, and consumer cobalt demand is expected to decline by 10%. As persistently high cobalt prices suppress demand, if China secures 90% of the DRC quota, supplemented by MHP and recycling supply, inventory buildup could occur as early as 2026. Panel Discussion: Global Metals Market Outlook——Geopolitics Disruption, Macro Cycles and the Return of Commodity Volatility •Copper and Aluminum Price Rise, 2024-2026 •Precious Metals Storm: Silver Swung Wildly, Gold Hit Record Highs — Interest Rate Cycles, Safe-Haven Demand, and Industrial Logic •Precious Metals and Industrial Metals: Are Commodities Entering a New Cycle •Focus on Critical Minerals: Emerging Region Supply Rise and Policy Shifts, Green Transition Co-Shaping a New Narrative •Chinese Market: The 15th Five-Year Plan Moderator: Yanchen Wang, Managing Director, SMM Global UK Ltd. Panelists: Yahong Tian, Co-Head of R&D, CITIC Futures Henry Van, Head of Industrial Metals Analysis, Trafigura Sharon Ding, Head of China Basic Materials, UBS Justin William Hughes, Commodity Derivatives Distribution, Optiver Xie Shaobo, Head of China, Appian Mining Fund & independent non-executive Director, Zijin Gold International Panelists noted aluminum has great upside—its 10% price rise lags its 4%-5% supply contraction (vs. oil’s 60% price surge on 10% supply drop), with valuation recovery incomplete. They were more optimistic about copper demand, driven by real downstream demand rather than speculation; aluminum semis’ upside is underappreciated due to high oil prices. Long-term, copper and gold are key for mining investment, with scarce high-quality copper mines and solid gold fundamentals. They also discussed US tariffs, China’s metal demand resilience and overseas mining investment. Overseas mining success hinges on resource-to-reserve certainty; West Africa, Latin America, DRC and Zambia are new hotspots, while Australian/Canadian listed miners are undervalued. Enterprises must plan prudently based on risk tolerance. Geopolitical conflicts (e.g., Iran) may trigger energy crises, but current inflation control and China’s high metal consumption share weaken demand impact. Long-term, energy crises will boost electrification, expanding copper/aluminum demand. Investment depends on risk appetite and fundamental grasp. SMM Industry Analysis: Strategic Re-valuation of Minor Precious and Minor Metals in 2026 — The Case of Silver and Tungsten Silver: Market Supply-Demand Balance and Macroeconomic Volatility: Evolution and Shift in Industrial Demand, Particularly Driven by the PV Sector Tungsten: Strategic Status Upgrade - Supply Constraints and High-End Demand Driving the 2026 Price Rally Speaker: Juno Zhu, Senior Analyst of Minor and Precious Metals, SMM Juno shared insights on the strategic revaluation of tungsten and silver. Tungsten: Tungsten prices have surged over 500% since 2025; China holds over 50% of global tungsten reserves, contributes nearly 80% of global production, and possesses a complete industrial value chain; China's tungsten supply constraints in 2025: H1 mining quotas declined 6.45% YoY; global new project stagnation: limited capacity expansion in 2026, with ex-China mine development cycles of 3–5 years; domestic tungsten downstream applications: significant growth in cutting tools and PV tungsten wire in 2025; European market: persistent raw material shortages, with Rotterdam tungsten prices surging since February 2025; China's tungsten product exports: transitioning from primary products to deep-processed products; SMM analysis: the tungsten market supply-demand gap is expected to persist but narrow in 2026; prices are expected to consolidate at highs after overheating cools. Silver: Silver price fluctuations in 2026: an unexpected surge from Q4 2025 to Q1 2026, where frenzied investment demand and capital liquidity completely overshadowed the impact of the industrial off-season. Shift in trade dynamics in Q1 2026: SGE-LBMA premiums reversal and a surge in imports. Demand spike in Q1 2026: the PV industry started with a recovery, and an investment boom generated a phased demand peak. PV market outlook: policy shifts in 2026 are expected to curb demand growth, with overall silver consumption remaining stable. Silver demand outlook for 2026: industrial fundamentals provide support, while investment surges serve as a tactical highlight. Silver supply outlook for 2026: mild annual growth and an expanding secondary supply share are expected to drive a tight balance in the market. Market outlook: short-term trends are expected to revert to industrial fundamentals, while the medium and long-term trajectory is expected to fluctuate at highs driven by safe-haven demand. Panel Discussion: Metals in a Fragmented World: Trading Opportunities in the Age of Instability (Physical Trading and Hedging) •Shifting Liquidity Landscape across LME, CME, and SHFE •Shipping Risks and Sanctioned Metals: Implications for LME Inventory Structure •How European CBAM is Reshaping Global Metals Trade Flows •Is the Metals Market Entering an "Era of Geopolitical Risk Premiums" •Internationalization of SHFE & GFEX: Opportunities and Challenges for Global Investors Moderator: Jean Tang, Commercial Director, SMM Panelist: Anant Jatia, Founder and Chief Investment Officer, Greenland Investment Management Bella Yu, General Manager of Marketing Department, Liyang Unilink E-commerce Co., Ltd. David Wilson, Director of Commodity Strategy, BNP Paribas Duncan Hobbs, Research Director, Concord Resources Nicholas Snowdon, Head of Metals and Mining Research, Mercuria Energy Trading SA Sabrina Qian, Director of Geared broking desk, IFCHOR GALBRAITHS Anant Jatia stated: CBAM represents a major policy shift in Europe's metals sector. It is not merely about raising trade costs, but will profoundly reshape global metal trade flows and pricing logic. CBAM officially took effect in January this year, initially covering categories such as steel and aluminum semis, with its core mechanism incorporating carbon emission intensity costs into Europe's metal pricing system. High-carbon-emission producers will need to bear additional carbon allowance costs, significantly weakening their export competitiveness to Europe, while green capacity powered by clean energy will gain a clear advantage in the European market and capture greater market share. Following the policy's implementation, the landed cost of metals in the European market will rise, sustaining a long-term regional premium similar to the aluminum premium structure in the US market. Compared with the market differentiation among LME-registered brands following CBAM's implementation, what deserves more attention are the entirely new market opportunities it creates. By sourcing low-carbon, high-quality materials, market participants can potentially capture green premiums, while the mechanism will also transform metal trading models and the global trade flow landscape. The panelists also discussed the changing liquidity landscape across LME, CME, and SHFE. They noted that liquidity in the commodity market is becoming increasingly fragmented, with copper and other products now tradable across multiple global futures exchanges. Price discovery is no longer concentrated in a single market, and the traditional pattern of one market leading gains and others following has reversed, with multi-exchange rotation driving price movements becoming the norm. Factors such as geopolitical policies and tariff adjustments have given rise to regional pricing divergence, with price movements in some markets increasingly driven by capital flows and sentiment. Policy and geopolitical events have also significantly affected the spread between futures and spot prices of metals, creating opportunities for cross-market arbitrage. Meanwhile, policies related to critical minerals supply security, regional supply shocks, and geopolitical disruptions have widened the dislocation between regional fundamentals and price signals. The metals market has entered a window of structural arbitrage opportunities, and this trend is expected to persist. Cross-market arbitrage continues to provide liquidity support to exchanges, a phenomenon broadly observed across both industrial and precious metals. In addition, the panelists engaged in in-depth discussions on the differences between exchange liquidity and industrial liquidity, as well as factors influencing metal price trends, including fundamentals, geopolitical developments, energy costs, and commodity transportation costs. Opening Remarks for Coffee Break Xu Tao, CEO of CSCI In his address, Xu Tao stated that Hong Kong serves as a vital hub in the global metals pricing and trading system, playing a key role in the aggregation of LME delivery resources and the internationalization of RMB-denominated commodities. Going forward, China Securities International will continue to leverage its role as a bridge for cross-border business, deepen collaboration with CSC Futures, and provide clients at home and abroad with efficient and professional comprehensive financial services in commodities, contributing to a higher level of opening-up of China's financial markets. Networking (Coffee Break) Acknowledgments The 2026 SMM Hong Kong Metals Forum was successfully held with special thanks to the Platinum Sponsor, China Securities International, for its strong support, as well as sincere gratitude to Liyang Unilink E-commerce Co., Ltd. for its significant contribution to the forum. Going forward, China Securities and China Securities International will continue to leverage the unique geographical and resource advantages of Hong Kong as an international financial center, deepen strategic cooperation with authoritative industry platforms such as SMM, and continuously improve the "onshore + offshore" integrated bulk commodity comprehensive service system, precisely empowering enterprises to seize market opportunities and hedge operational risks, contributing professional expertise to advancing the internationalization of China's bulk commodity market and enhancing the industry's global competitiveness. Liyang Unilink E-commerce Co., Ltd. (formerly Wuxi Stainless Steel Electronic Trading Center) has been engaged in new energy materials and critical metals supply chain services for over 20 years. Through its digital platform and offline service network, the company provides upstream and downstream clients with full-process online services including price negotiation, contract signing, contract execution, payment settlement, cargo delivery, processing, quality inspection, and after-sales services. With transparent pricing, 100% fulfillment guarantee, and strict quality control, it has established stable cooperation with over 30,000 industrial clients. In the field of critical strategic metal resources, Unilink has built a supply chain service system covering 14 critical metal varieties including indium, bismuth, nickel, cobalt, and lithium. Spot delivery volumes of indium and bismuth each account for over 90% of China's consumption. For new energy materials, spot delivery volumes of nickel, cobalt, and lithium on Zhonglian Jin's platform account for 30%, 90%, and 20% of China's consumption respectively, while daily sulfur trading volume exceeds 80,000 mt. Unilink implements a service model of "payment upon delivery, cargo pick-up upon payment," effectively shortening delivery cycles, reducing enterprise operating costs, and helping upstream and downstream clients achieve stable and efficient material scheduling. Zhonglian Jin strictly adheres to national industrial policies and resource management requirements, consistently focusing on serving the real economy, fully ensuring the security and smooth operation of bulk commodity supply chains, and promoting efficient resource allocation. It has ranked among China's Top 500 Service Enterprises and China's Top 20 Growing Internet Enterprises for two consecutive years. With that, the 2026 SMM Hong Kong Metals Forum came to a successful conclusion! Thank you for your help and support for this forum~

This week, ternary cathode material prices continued their upward trend. Raw material side, nickel sulphate, cobalt sulphate, and manganese sulphate prices were basically flat this week. Mainly driven by spot lithium carbonate and lithium hydroxide prices still rising sharply, ternary cathode material prices reached a periodic high. Transaction side, spot lithium carbonate and lithium hydroxide prices saw a slight correction in the latter half of the week, providing some producers with pricing opportunities and resulting in small-batch order transactions. Long-term contract side, discounts showed no significant change recently. Demand side, China's EV market was in a phase of concentrated stockpiling for new car models, with orders recovering notably; markets outside China also saw strong demand, driven by impressive European auto sales and stockpiling for new product launches by certain brands, jointly boosting order growth at cathode plants in China. Consumer market side, demand remained mediocre recently due to the traditional off-season and continuously rising raw material prices.

According to customs data, China imported 6,835 tonnes of lithium hydroxide in March 2026, up 66% month-on-month and double year-on-year. Of this, 2,927 tonnes came from Indonesia, accounting for about 48% of total imports, while approximately another 40% came from Australia and South Korea. During the same period, China exported 3,143 tonnes of lithium hydroxide, up 20% month-on-month but down 26% year-on-year. In terms of exports, 2,059 tonnes went to South Korea and 278 tonnes to Japan. Since 2025, the combined effect of diverging domestic and overseas demand and continued overseas supply of lithium salts has caused excess lithium hydroxide to flow one‑directionally into the Chinese market. From the fourth quarter of 2025, domestic imports of lithium hydroxide remained at persistently high levels, while exports continued to weaken. Entering the first quarter of 2026, total imports exceeded 16,000 tonnes, while total exports were less than 8,000 tonnes, resulting in net imports of more than 8,000 tonnes — a complete reversal of the trade pattern characterised by "shrinking exports and surging imports". In terms of major import sources, Japan, South Korea, Australia and Indonesia accounted for a significant share. The key reason is that both domestic demand and prices are more favourable than overseas markets: In the third quarter of 2025, driven by expectations of subsidy policy reduction in 2026 and bullish sentiment on raw material prices, demand for ternary cathode materials remained strong in the fourth quarter. While overseas lithium hydroxide production lines maintained relatively stable output, downstream demand fell short of expectations, leading to rising inventory pressure among overseas holders – who had a strong incentive to destock towards the end of the year. Price increases for lithium hydroxide overseas lagged behind those in China, creating a profitable import arbitrage window. Coupled with the anticipated launch of lithium hydroxide futures in 2026, the number of trading participants involved in lithium hydroxide imports increased significantly. Given the long negotiation cycles and relatively stable supply channels with overseas suppliers, lithium hydroxide from Japan, South Korea and Australia has continued to flow into China. However, it is worth noting that although the continuous increase in import volumes has made lithium hydroxide more readily available for trading in China from Q4 2025 to Q1 2026, the quality of the lithium hydroxide flowing into the country is uneven due to the relatively customized production requirements of ternary cathode materials. As a result, there is a certain lag before it actually reaches material manufacturers. Looking ahead, as long‑term orders are steadily delivered, import volumes are expected to remain relatively high, while the potential for export growth is likely to remain limited.

Around April 23, 2026, import and export data for cobalt and lithium battery industry chain products in March were released. Data showed that March spodumene imports rebounded significantly from February, hitting a new record high of 837,400 mt in physical content. Lithium carbonate side, China imported 29,974 mt of lithium carbonate in March, up 13% MoM and up 65% YoY.......SMM compiled the import and export data for battery materials as follows: Upstream Lithium Concentrates Customs data showed that March spodumene imports rebounded significantly from February, hitting a new record high of 837,400 mt in physical content. By source country: African ore arrivals increased notably — Nigeria imports reached 125,100 mt, up 63% MoM; Zimbabwe shipments from earlier periods arrived at ports in the month totaling 112,600 mt, up 61% MoM; Canada broke the zero-import situation in January-February with 58,600 mt arriving in March; while Australian ore volumes declined MoM due to shipping schedule impacts. According to SMM's screening and analysis, total port arrivals this month were equivalent to 81,000 mt LCE. Lithium concentrates accounted for 72% of the month's imports, down slightly compared to the same period last year, mainly due to the notable increase in South African raw ore port arrivals recently. Notably, driven by prices and local beneficiation plant development, Nigerian ore volumes increased significantly, with not only raw ore volumes rising markedly but also concentrates share increasing notably YoY. Source: China Customs, compiled by SMM Spodumene concentrates (CIF China) spot pricing side, according to SMM spot prices, March spodumene concentrates (CIF China) spot prices showed a V-shaped trend, dropping to a low of $2,028/mt at month-end, then rebounding to $2,313/mt at month-end, with a monthly average of $2,081.4/mt. According to SMM, in March, spodumene and lepidolite profit trends diverged, with structural cost differences among lithium chemicals enterprises becoming evident. Available spodumene volumes were tight, ore traders held back from selling, and inventory continued to be drawn down. Enterprises purchasing spodumene externally suffered losses on spot margins throughout the month, with non-integrated enterprises facing greater difficulties in hedging and procurement. Entering April, spodumene concentrates (CIF China) spot prices also showed a pattern of initial decline followed by recovery. Recently, spodumene concentrates prices continued to probe higher. As of April 27, spodumene concentrates (CIF China) spot prices rose to $2,507/mt, up $194/mt from $2,313/mt at end-March, an increase of 8.39%. According to SMM's recent research, driven by market expectations of improving future demand, speculative sentiment in the lithium carbonate futures market remained strong, pushing futures prices up. Lithium ore merchants showed increased willingness to sell, with pricing-against-futures prices staying high. Looking ahead, lithium chemical plant operating rates stay high, with demand for lithium ore continuing to climb. Meanwhile, Zimbabwe has suspended spodumene exports for nearly two months, leading to persistently tight available lithium ore supply in the market. Overall, spodumene prices are expected to hold up well. Lithium Carbonate According to customs data, China imported 29,974 mt of lithium carbonate in March, up 13% MoM and up 65% YoY. By source, the top 3 were Chile (18,000 mt, 61%), Argentina (8,292 mt, 28%), and Indonesia (2,100 mt, 7%). From January to March, China's cumulative lithium carbonate imports reached 83,000 mt, up 65% YoY cumulatively. China exported 448 mt of lithium carbonate in March, down 25% MoM and up 104% YoY. From January to March, China's cumulative lithium carbonate exports totaled 1,516 mt, up 46% YoY cumulatively. According to SMM spot quotes, lithium carbonate showed a volatile trend of first declining then rising in March. As of March 31, the average spot price of battery-grade lithium carbonate was quoted at 163,000 yuan/mt, with a monthly average price of 156,700 yuan/mt. According to SMM analysis, spot lithium carbonate prices in China showed a significantly volatile upward trend in March, with the monthly average price up 5% MoM. Fundamentals-wise, supply side, production gradually recovered as maintenance ended, and lithium chemical plants showed increased willingness to sell spot orders at the relatively high level around 170,000 yuan/mt; demand side, downstream cathode material producers basically adopted a dip-buying strategy, with strong purchase willingness at price levels around 140,000 to 150,000 yuan/mt. As demand continued to improve, some enterprises engaged in large-scale restocking at low levels. In March, battery-grade spot lithium carbonate prices rose to 172,500 yuan/mt at the beginning of the month and pulled back to around 163,000 yuan/mt at month-end. Recently, battery-grade lithium carbonate spot quotes stayed high above 170,000 yuan. As of April 28, battery-grade lithium carbonate spot quotes were at 172,000-177,000 yuan/mt, with an average price of 174,500 yuan/mt. According to SMM, in today's spot lithium carbonate market, as lithium carbonate prices declined, downstream purchase enthusiasm picked up, with some buyers' target prices basically around 170,000 to 175,000 yuan/mt; upstream spot order quotes remained at high levels. Overall, market inquiries and transactions were relatively active. Looking ahead, the supply side presents mixed signals: Huayou in Zimbabwe announced the successful shipment of lithium sulfate over the weekend, which may ease some supply anxiety in the short term; however, disruptions from mine license renewals in Jiangxi persisted, Middle East geopolitical fluctuations pushed up diesel costs, and some Australian mines confirmed cost increases in their Q1 quarterly reports. Although actual mining has not been affected yet, medium and long-term supply elasticity may be impacted. Demand side, LFP capacity release and the peak season for new car model deliveries in Q2 are expected to continue boosting lithium carbonate demand. Overall, cost support and demand expectations are resonating, and lithium carbonate prices are expected to remain on a relatively strong trend in Q2. Lithium Hydroxide According to customs data, in March 2026, China imported 6,111 mt of lithium hydroxide, up 66% MoM and up 200% YoY. Of this, 2,927 mt came from Indonesia, accounting for approximately 48% of imports, with another 40% from Australia and South Korea. In March, China exported 3,143 mt of lithium hydroxide, up 20% MoM and down 26% YoY, of which 2,059 mt were exported to South Korea and 278 mt to Japan. Battery Materials Ternary Cathode Material In March 2026, China's ternary cathode material (NCM and NCA combined) exports reached 21,900 mt, up 103% MoM and up 163% YoY. Of this, NCM exports were 20,900 mt, accounting for 96%. In terms of export destinations, South Korea was the largest importer of NCM, with March imports of 8,500 mt; Poland, Malaysia, and Japan ranked second, third, and fourth at 3,720 mt, 2,409 mt, and 2,363 mt respectively. In addition, Germany's imports saw significant growth compared to the same period last year. China's ternary cathode material exports hit a record high in March, mainly driven by the cancellation of China's 13% VAT export rebate policy for ternary cathode material effective April 1. Four leading battery cell manufacturers in Japan and South Korea placed orders in advance, boosting demand not only for their domestic plants but also for their battery cell production sites in Southeast Asia and Europe. Beyond the rebate policy impact, EV subsidy policies in Europe also fueled strong demand growth, driving up China's ternary cathode material exports. Among them, the Nordic countries led in EV penetration rate thanks to the most generous subsidies; the UK, France, and Germany continued to serve as important sources of NEV sales support. In contrast, US NEV sales declined notably in Q1, down nearly 30% YoY, significantly impacting Q1 orders for some ex-China battery cell manufacturers targeting the North American market. Looking ahead to Q2, Europe is expected to remain the largest source of incremental ex-China ternary cathode material demand. Despite some disruption from the tax rebate policy, as more battery cell manufacturers and ternary cathode producers plan to complete construction and commence production this year and next, the outlook for European market demand remains optimistic. LiPF6 According to China Customs data, in March 2026, China's cumulative LiPF6 exports totaled approximately 4,554 mt, up approximately 161% MoM, while cumulative imports were approximately 31 mt. Export side, China's LiPF6 exports in March 2026 were approximately 4,554 mt, up approximately 161% MoM from February and up approximately 188.8% YoY. Specifically, as the VAT rebate policy for LiPF6 exports was officially canceled starting April 1, 2026, enterprises rushed to export in advance in March, driving MoM increases in exports to multiple major destination countries. Among them, exports to Poland were 1,723.602 mt (up approximately 693.63% MoM), South Korea 1,099.429 mt (up approximately 184.26% MoM), Czech Republic 460.5 mt (up approximately 237.36% MoM), and Malaysia 249.346 mt (up approximately 141.39% MoM). However, exports to the US declined — 266.146 mt (down approximately 53.70% MoM). Artificial Graphite In March 2026, China's artificial graphite imports were 673 mt, up 0.6% MoM and down 34.1% YoY. Average import price in March 2026 was 61,696 yuan/mt, up 3.9% MoM and up 10.6% YoY. Data source: China Customs, SMM In March 2026, China's artificial graphite exports were 37,525 mt, up 6% MoM and down 16% YoY. Average export price in March 2026 was 9,866 yuan/mt, up 14.4% MoM and down 7% YoY. Flake Graphite In March 2026, China's flake graphite imports were 3,905 mt, up 11% MoM and up 45% YoY. Data source: China Customs, SMM In March 2026, China's flake graphite exports were 8,118 mt, up 35% MoM and up 65% YoY. Phosphate Ore According to customs data, China's phosphate ore imports in March 2026 were 182,000 mt. March imports rose 88.2% from February's 97,000 mt, up 144.4% YoY from 75,000 mt; March total import value was $14.552 million, up 74.6% MoM from February's $8.336 million. Unit price was $79.9/mt, down 7.2% significantly from February's $86.1/mt. In March, China's phosphate ore imports mainly came from Egypt and Pakistan, with imports of 170,000 mt and 12,000 mt respectively. Affected by factors related to the Strait of Hormuz, Jordanian phosphate ore failed to be imported, though imports from other regions filled the gap. Due to hindered transportation of high-priced Jordanian phosphate ore and lack of import volume support, March phosphate ore import unit price declined from February, pulling back to below $80/mt. Cobalt Cobalt Hydrometallurgy Intermediate Products In March 2026, China's cobalt hydrometallurgy intermediate products imports were approximately 1,690 mt in physical content, down 26% MoM and down 97% YoY. Among them, imports from DRC were approximately 1,668 mt in physical content, up 10% MoM and down 97% YoY. In March 2026, the average import price of China's cobalt hydrometallurgy intermediate products was $16,730/mt in physical content, up 2.92% MoM. It was learned that cobalt intermediate products export volume from DRC increased notably in March. If the government maintains this efficient approval pace going forward, quotas for Q4 2025 and Q1/Q2 2026 will most likely be exported within the stipulated timeframe, reducing the probability of further delays. However, shipping in Africa is currently tight, with only a few miners completing small-batch vessel bookings in April. Based on a 1-2 month shipping time from South Africa to China, these intermediate products are expected to arrive at port in May-June, while intermediate products from other miners are not expected to arrive until around July. Unwrought Cobalt In March 2026, China's unwrought cobalt imports were approximately 961 mt, down 44% MoM and up 83% YoY. March imports remained at a relatively high level, mainly due to continued arrivals of export orders placed during the import window opening from late December 2025 to mid-January 2026. On average import price, China's unwrought cobalt average import price in March 2026 was $50,346/mt, up 10% MoM. Cumulative imports from January to March 2026 totaled 4,582 mt, up 206% YoY cumulatively. It was learned that as the import window gradually closed after mid-to-late January 2026, overseas traders' export willingness weakened, and refined cobalt imports in April may continue to decline MoM. Exports, China's unwrought cobalt exports in March 2026 were approximately 413 mt, up 32% MoM and down 69% YoY. By country, China's exports to the US rose slightly, with 280 mt exported to the US in March, up 13% MoM. Average export price, China's average export price of unwrought cobalt in March 2026 was $51,596/mt, down 3% MoM. Cumulative imports from January to March 2026 totaled 1,574 mt, down 52% YoY cumulatively.

[Siemens Partners with Vulcan Energy to Expand Sustainable Lithium Supply in Europe] Siemens has joined forces with Vulcan Energy to advance Europe's first fully integrated lithium and renewable energy project. The two companies signed a framework agreement for the Lionheart lithium and renewable energy project in the Upper Rhine Valley, Germany. They also signed a Memorandum of Understanding (MoU), making Siemens the preferred supplier of automation and digitalization technologies for Vulcan Energy through 2035. Vulcan's preferred partnership with Siemens will extend from Lionheart to future development phases. The Lionheart project involves the construction of an integrated lithium and renewable energy project with a target capacity of 24,000 mt of lithium hydroxide monohydrate (LHM), sufficient to supply approximately 500,000 EV batteries per year, while providing local consumers with 275 Gwh of renewable electricity and 560 Gwh of thermal energy annually, with a projected project lifespan of 30 years. Roland Busch (pictured above), President and CEO of Siemens AG, stated: "As a strategic investor and key technology partner, we are helping Vulcan Energy establish Europe's first major sustainable lithium source. With our technologies — from advanced automation and digitalization to smart building solutions — we help ramp up production faster. This is critical for creating a local lithium supply for our energy transition and for building a more competitive, resilient, and sustainable European industry. This is a powerful example of boosting growth and competitiveness in line with the 'Made in Germany' initiative." Source: https://theenergyst.com/ [Argentina's Lithium Sector Gains Strategic Development Boost from Chinese Partners] The arrangements bringing Chinese partners into Argentina's lithium sector are fundamentally reshaping the critical minerals landscape in South America, as international cooperation has become indispensable for addressing complex supply chain demands and capital-intensive development requirements. These partnerships demonstrate how strategic alliances can accelerate project advancement while sharing technical and financial risks across complementary capabilities. Moreover, the success of these collaborative models signals a broader transformation underway in global mining operations — one in which technological expertise and market access often matter more than traditional resource ownership structures. Chinese enterprises have fundamentally altered the investment architecture of Argentina's lithium mine industry through systematic capital deployment strategies that prioritize vertical integration over speculative resource positioning. This approach reflects broader supply chain security objectives rather than purely financial returns, resulting in distinctive partnership structures that are markedly different from traditional Western mining investment models. The investment patterns emerging in northwestern Argentina demonstrate a sophisticated risk allocation mechanism between international partners and local operators. Chinese enterprises typically structure their participation through phased equity arrangements, starting with technical cooperation and gradually evolving into controlling positions based on development milestones. Source: https://discoveryalert.com.au/ [Mangrove Launches North America's First Commercial Lithium Refining Facility] Mangrove Lithium, a Canadian venture capital-backed private enterprise, launched North America's first commercial lithium refining facility in British Columbia. This marked a significant step toward establishing a secure domestic lithium supply chain for the Canadian and North American markets, supporting the continent's electrification goals. Mangrove's facility uses the company's proprietary electrochemical technology to convert extracted lithium into battery-grade materials, offering a more economical, flexible, and sustainable approach compared to traditional chemical methods. The plant has a nameplate capacity of 1,000 mt/year, capable of producing enough battery-grade lithium to support the production of approximately 25,000 EV units per year. Source: https://www.miningweekly.com/ [Global Lithium Secures Funding to Support Future Development of Manna Project] Global Lithium signed a binding terms list with global battery metals producer Lopal, covering a $7.32 million equity investment and a $75 million (A$104.85 million) offtake prepayment. The funding will accelerate the development of Global Lithium's Manna lithium mine project in Western Australia. Global Lithium also signed a separate binding agreement with a subsidiary of Lopal for the sale of mining and mineral rights interests in its Marble Bar lithium mine project in Western Australia. Lopal will pay A$14.85 million for the project, comprising A$11.85 million in fixed consideration and an additional A$3 million payable upon the granting of the mining lease. Source: https://mining.com.au/