On February 26, foreign media reported that POSCO and SK On have signed a long-term lithium supply agreement aimed at stabilizing the battery materials supply chain. According to the agreement, POSCO will supply SK On with over 25,000 tons of lithium from 2026 to 2028. This volume is sufficient to produce batteries for approximately 400,000 electric vehicles. It is understood that the lithium will be produced at POSCO Argentina SAU's Hombre Muerto salt flat in Salta Province, Argentina. Meanwhile, SK On indicated that the lithium could potentially also be used for energy storage systems.

[POSCO and SK On Form Lithium Alliance for Battery Cooperation] POSCO and SK On have signed a long-term lithium supply agreement, aiming to stabilize the battery materials supply chain. According to a statement released by the two companies on Wednesday, POSCO will supply up to 25,000 mt of lithium from this year until 2028 under the agreement. This supply is sufficient to produce batteries for approximately 400,000 EVs. The lithium will be produced by POSCO Argentina at the Salar del Hombre Muerto salt flat in Salta Province, Argentina, and supplied to SK On's EV battery projects in Europe and North America. SK On is also considering using the material for ESS. Source: https://pulse.mk.co.kr/ [Cornwall's Geothermal Revolution: Extracting Green Energy and Lithium from Granite] The UK's renewable energy sector has achieved a significant leap forward, with a pioneering mini power station in Cornwall officially commencing operation, successfully using underground hot granite to produce zero-carbon electricity and extract high-value battery-grade lithium. Led by Geothermal Engineering Ltd., the project innovatively combines green power generation with critical minerals extraction, is expected to revitalize the region's historic mining economy and supply electricity to thousands of households via the power grid. For East Africa, a region rich in geothermal potential (particularly the Kenyan Rift Valley), the dual extraction technology provides an attractive model. If African energy producers can adopt this approach, simultaneously obtaining electricity and high-profit minerals from geothermal wells, it will significantly enhance the economic feasibility of green energy projects across the continent. Source: https://streamlinefeed.co.ke/ [Zimbabwe Bans Lithium Exports: Global Supply Chain Crisis Emerges] Zimbabwe's recent decision to implement a comprehensive ban on lithium exports marks a watershed moment for the global critical minerals market, highlighting the growing influence of resource nationalism on international supply chains. This policy shift reflects a broader trend: mineral-rich countries are prioritizing domestic value creation over raw material exports, fundamentally altering the landscape of the global battery metals market. The impact extends far beyond a single country; its ripple effects will run through international supply chains, from EVs to renewable energy infrastructure. When countries with significant mineral reserves impose export restrictions, the resulting market dynamics can permanently alter the entire industry's price structures, investment flows, and strategic planning. Zimbabwe's recent decision to suspend mineral exports is a prominent example of this phenomenon. This southern African country, which supplied approximately 10% of the world's lithium resources in 2024, has effectively cut off external supply of its battery metal resources, forcing international buyers to scramble for alternative sources, while domestic processing capacity remains severely underdeveloped. Source: https://discoveryalert.com.au/ [Atlantic Lithium Acquisition Proposal Rejected: 2026 Strategic Value Preservation Strategy] When mature miners pursue mergers and acquisitions during market recovery periods, the core of their strategy shifts from acquiring distressed assets to preserving strategic value. The lithium industry exemplifies this dynamic—during phases of rebounding commodity prices, pre-production developers increasingly tend to reject acquisition proposals, prioritizing long-term value creation over immediate liquidity events. Furthermore, understanding broader critical minerals strategies is essential when assessing these complex market dynamics. Market participants observed that spodumene concentrate prices rebounded from a cyclical low of $800/mt in October 2025 to approximately $1,900/mt by February 2026, a 137.5% increase within four months. This rapid recovery has created a significant valuation gap between acquirers' offers and target companies' intrinsic value assessments. The case of Atlantic Lithium's rejected acquisition proposal demonstrates how pre-production lithium developers evaluate conditional non-binding acquisition offers based on the medium and long-term demand fundamentals in the EV and BESS sectors. Enterprises in the late-stage permitting phase generally believe that current market conditions do not fully reflect the full potential of their asset portfolios. Source: https://discoveryalert.com.au/ [Indian Company Deploys Non-Lithium Multi-Ion Battery System] Mumbai-based battery technology developer Gegadyne Energy stated that its delivery of the first non-lithium multi-ion chemistry battery packs to two of the world's largest material handling original equipment manufacturers marks a true "inflection point" for the forklift industry. Gegadyne has completed the first commercial deployment of its non-lithium multi-ion chemistry battery packs with Linde Material Handling India and the Godrej & Boyce Group. The company claims that this battery, with a cycle life exceeding 5,000 cycles, can be charged from 0% to 100% in 15 minutes, thereby "completely eliminating" dependence on the lithium supply chain. Designed for forklifts, cranes, and warehouse equipment, the battery operates effectively within a temperature range of -40°C to 65°C. Source: https://www.forkliftaction.com/

In recent years, the significant fluctuations in lithium prices have subjected enterprises across the industry chain to a rollercoaster of experiences. Although lithium prices are no longer as high as they once were, the development prospects of the new energy industry chain remain bright amid the global push for a low-carbon economy, with the importance of lithium resources becoming increasingly prominent. As one of the regions with the most abundant lithium resources globally, South America, particularly the "Lithium Triangle" (comprising Bolivia, Argentina, and Chile), holds over 55% of the world's proven lithium resources. Consequently, South America's lithium resources play a pivotal role in the global energy transition. Against this backdrop, SMM organized the 2025 SMM South American Lithium Resources Field Trip . Led by Siyu Chen, the project manager for SMM's overseas South American lithium resources field trips, and Zhicheng Zhou, a senior analyst in new energy and lithium batteries, the delegation visited lithium-related enterprises in South America from May 15 to May 26, 2025. They toured local lithium ore and material enterprises, held discussions with company executives, and explored potential opportunities in lithium ore resource development, technological exchanges, and investment cooperation. On May 19, SMM and the delegation members headed to Lake Resources for in-depth exchanges. Company Profile SMM and the delegation members visited Lake Resources . The company's CEO, David Dickson, and Marketing Manager, Bárbara Cozzi, warmly received the delegation and provided a detailed introduction to the company's business development. Lake Resources NL (ASX: LKE; OTC: LLKKF) is a responsible lithium developer that utilizes state-of-the-art ion exchange extraction technology to produce sustainable, high-purity lithium from its flagship Kachi project, located in the Catamarca Province of Argentina's Lithium Triangle region. Lake also has an early-stage project in the region, namely the Ancasti or Catamarca pegmatite lithium project. The company is confident in the long-term (post-2030) fundamentals of the lithium industry. The Kachi project produces battery-grade lithium carbonate (>99.5% purity). According to available data, the project boasts a total of 11.1 million tonnes (Mt) of lithium carbonate equivalent (LCE), including 8.2 Mt of measured and indicated resources, 0.6 Mt of ore reserves, and 2.9 Mt of inferred resources. The project has a mine life of 25 years. In terms of project construction progress, the Kachi Phase I project is designed to have a production capacity of 25,000 mt of lithium carbonate. It is anticipated that a second plant may be constructed in the future, adding an additional 25,000 mt/year of lithium carbonate production capacity, with further expansions possible depending on market conditions. When discussing the outlook for the future lithium market, Lake Resources stated that the current lithium spot price is unsustainable: it has fallen below $10,000 per tonne—at this spot price, the economics of most lithium-related projects are poor. Additionally, there is ongoing uncertainty regarding long-term lithium prices, with market opinions on future price developments ranging widely, from $15,000/mt to $27,000/mt. Some market forecasts now predict that the global lithium supply deficit will begin in 2029, earlier than the previously forecasted 2030. Argentina and direct lithium extraction (DLE) technology may drive the next wave of growth in lithium production. It is expected that lithium demand will roughly double over the next five years. According to Goldman Sachs' forecast, the compound annual growth rate (CAGR) of lithium demand will reach approximately 17% from 2025 to 2030. It is anticipated that the lithium market will experience oversupply in the next four to five years, with a supply deficit likely to emerge between 2029 and 2030. Group photo during the field trip After the visit, SMM and the field trip members took a group photo together with Lake Resources, aiming to strengthen their cooperation and friendship. It is believed that there will be deeper exchanges and cooperation in the future! Through this field trip and survey, SMM and the field trip members gained a deeper understanding of Lake Resources' development, as well as a more profound knowledge of the market status, development trends, and existing issues in the South American lithium battery industry. They will continue to deepen cooperation with major enterprises to achieve complementary advantages and promote the development of the lithium battery industry.

Roadmap" for New-Type ESS Manufacturing Industry Development Released; Long-Term Positive Support for Both Sides of Lithium and Nickel Supply and Demand Recently, the Ministry of Industry and Information Technology, along with seven other departments, jointly issued the "Action Plan for High-Quality Development of New-Type ESS Manufacturing Industry" (hereinafter referred to as the "Plan"). Experts pointed out that the detailed guidance in the "Plan" will be of great significance for the high-quality development of the ESS industry over the next decade. In addition, the "Plan" proposes to intensify support for domestic exploration of lithium, cobalt, nickel, and other mineral resources. According to market analysts, resource exploration is a key measure for China to ensure the security of its industry chain and enhance international competitiveness. Although the short-term impact on related metal prices is limited, in the long run, it will provide positive support for both lithium and nickel supply and demand.

Looking back at 2024, "oversupply" became a major synonym for the lithium market. Against the backdrop of an overall supply surplus in the industry, lithium carbonate prices occasionally rose at the beginning of 2024 due to temporary supply tightness but fell to a nearly three-year low of 72,250 yuan/mt on September 9, 2024, after supply recovered. This marked a decline of 495,250 yuan/mt from its peak of 567,500 yuan/mt, a drop of 87.27%. As of December 31, 2024, the average spot price of battery-grade lithium carbonate was reported at 75,050 yuan/mt, down 21,850 yuan/mt from 96,900 yuan/mt on December 29, 2023, representing an annual decline of 22.55%.

Pilbara Minerals has announced the results of the P2000 Project pre-feasibility study, indicating the potential to expand production capacity at its operation to over 2 million tons per annum (tpa) of lithium at SC5.2.