Japanese Prime Minister Kishida Fumio failed to reach a trade agreement with US President Trump during the Group of Seven (G7) summit, a result that has brought Japan's economy closer to the brink of recession amid the impact of US tariffs. "We will continue to actively coordinate with the US to reach an agreement that benefits both sides without sacrificing Japan's national interests," Kishida told the media on Monday on the sidelines of the G7 meeting in Calgary, Canada. "Currently, there are still differences between the two sides on some issues." Trump, for his part, told the media that he had a "very good conversation" with Kishida and said an agreement was still possible. "The Japanese are tough," Trump said. Regarding the potential consequences of failing to reach an agreement, he said, "At the end of the day, you have to understand that we'll send a letter telling them this is the price you have to pay, or else don't do business with us." Like other countries, Japan faces 25% tariffs on automobiles and parts, as well as 50% tariffs on steel and aluminum products. In addition, the Trump administration has imposed a reciprocal tariff rate of 24% on Japan (currently temporarily reduced to 10%). According to a report released by Daiwa Institute of Research in May this year, if the so-called "reciprocal tariff" rises from the current 10% to 24%, Japan's real GDP will be reduced by approximately 2.2% by 2029. Automobile tariffs are a key focus of negotiations between Japan and the US. The automotive industry is crucial to Japan's economy. According to data from the Japan Automobile Manufacturers Association (JAMA), the industry employs approximately 5.6 million people, accounting for 8.3% of the country's total workforce, and contributes about 10% of GDP. Major Japanese automakers such as Toyota, Honda, Mazda, and Subaru expect to face collective losses exceeding $19 billion in the current fiscal year alone due to the impact of tariffs. "For Japan, automobiles are indeed a matter of national interest. We will protect them at all costs," Kishida said in a media interview. When asked whether automobile tariffs were included in the negotiation agenda, Trump did not reveal much, only saying, "We'll see." According to previous media reports, Japan has proposed a series of potential concessions in an attempt to narrow its trade surplus with the US, including increasing imports of soybeans from the US and strengthening cooperation in the shipbuilding sector. In addition, Japan has also tried to persuade the US by emphasizing its status as the largest investor in the US, arguing that if tariffs weaken Japan's domestic economy, it will affect its ability to invest in the US. However, so far, these commitments still seem not enough to facilitate a trade agreement between the US and Japan.

As Trump's tariff policy fluctuated repeatedly, after European and American automakers suffered setbacks, Japanese automakers' performance also collapsed. Japanese automakers Honda and Nissan both reported financial results on Tuesday that fell short of expectations. Honda, affected by tariffs, saw its Q4 operating profit plummet by over 70% YoY, with a 12.2% decline in operating profit and a 24.5% drop in net profit for the full year. Honda also adopted a relatively pessimistic outlook for the future, projecting that its operating profit, net profit, and revenue for the fiscal year 2026 will decline by nearly 59%, 70.1%, and 6.4% YoY, respectively. Nissan, on the other hand, announced that due to tariff impacts, it has decided not to release its operating profit forecast for the fiscal year ending March 2026, and will close some production plants, planning to lay off 20,000 employees by the fiscal year 2027. Meanwhile, Nissan replaced most of its senior management and appointed a new CEO. In addition, Toyota expects its operating income to decrease by 180 billion yen in just two months, while Mazda has not released its full-year performance forecast and warned that it may face a loss of 10 billion yen in April alone. According to CCTV News, the US previously imposed a 25% tariff on imported auto parts. The global automotive industry has already been widely affected by tariffs. In addition to Japanese automakers, European automakers such as Germany's Mercedes-Benz Group and Stellantis have withdrawn their performance guidance for this year, citing tariffs that have disrupted supply chains and driven up global auto prices. Mercedes-Benz stated that the uncertainties brought about by tariffs are too high to reliably assess this year's business development. Other companies have warned of significant financial losses . US automakers such as General Motors, facing tariff exposure of up to $5 billion, have significantly lowered their profit forecasts, while Ford Motor Company expects to incur annual losses of $1.5 billion. Honda's Q4 operating profit plummeted by over 70% YoY On Tuesday, May 13, Japanese automotive giant Honda reported its fourth-quarter and full-year performance for the period ending March 31. Q4 revenue: 5.36 trillion yen (approximately $4.726 billion), in line with the expected 5.36 trillion yen. Q4 operating profit: 73.5 billion yen, far below the expected 275.52 billion yen. Full-year revenue: increased by 6.2% YoY to 21.69 trillion yen, higher than the expected 21.63 trillion yen. Full-year operating profit: decreased by 12.2% YoY to 1.21 trillion yen, below the expected 1.41 trillion yen. Full-year net profit: decreased by 24.5% YoY to 835.84 billion yen. Performance guidance for 2026: Operating profit: It is expected that the full-year operating profit will decline by nearly 59% YoY to 500 billion yen. Net profit: Down 70.1% YoY to JPY 250 billion. Operating revenue: Down 6.4% YoY to JPY 20.3 trillion. Honda's financial results were released amid escalating trade tensions between the US and the world, with the US imposing a 25% tariff on foreign car imports. Honda's operating profit and net profit both fell sharply YoY. To avoid tariffs, Honda decided in March this year to shift the production location of its popular car model, the Civic Hybrid, from Mexico to the US. In addition, Honda is pessimistic about its future performance outlook, having revised down almost all financial indicators for the fiscal year ending March 2026. It expects operating profit to fall nearly 59% YoY, net profit to drop 70.1% YoY, and revenue to decline 6.4% YoY for the full year. According to data from Carpro, a US automotive market research firm, in 2024, Asian automakers accounted for six of the top eight car producers by sales volume in the US, with Honda ranking fourth. As Japan's second-largest car maker, Honda stated that the impact of global tariff policies will have a very significant effect on its business, and frequent policy adjustments make it difficult for Honda to make accurate forecasts. In its report, Honda said: "In the future, we will carefully assess the impact of tariff policies and expand recovery measures while striving to achieve further growth in operating profit." In addition, Honda also adjusted its dividend policy, changing the dividend payout ratio from the traditional payout rate to "equity dividends." It expects the dividend per share for the current fiscal year to increase by JPY 2 to JPY 70 per share. In terms of M&A, in February, Honda and its rival Nissan terminated negotiations on a USD 60 billion merger deal. If successful, the merger would have created the world's third-largest car maker, after Toyota and Volkswagen. Nissan to cut 15% of global workforce On the same day, Nissan Motor Co., Ltd. released its Q4 and full-year results for the period ending March 31. Full-year results: Full-year operating profit: JPY 133.71 billion (vs. estimated JPY 138.5 billion); Operating profit in Asia (excluding Japan): JPY 57.27 billion (vs. estimated JPY 52.29 billion); Operating loss in North America: JPY 38.32 billion (vs. estimated profit of JPY 2.45 billion); Operating loss in Europe: JPY 98.77 billion (vs. estimated loss of JPY 91.25 billion). Q4 results: Operating profit: JPY 5.79 billion (vs. estimated JPY 45.71 billion); Net loss: JPY 676.05 billion (approximately USD 4.6 billion) (vs. estimated loss of JPY 128.85 billion); Net sales: JPY 3.49 trillion (vs. estimated JPY 3.27 trillion); 2026 performance guidance: Expected net sales: JPY 12.50 trillion (vs. estimated JPY 12.31 trillion); Expected dividend: JPY 0.0 (vs. estimated JPY 7.70). Global auto sales for the full year are expected to reach 3.25 million units. In its earnings report released on Tuesday, Nissan stated that it had decided not to issue an operating profit forecast for the fiscal year ending March 2026 . Additionally, Nissan announced plans to reduce the number of its production plants from 17 to 10 by fiscal 2027 and to cut approximately 15% of its global workforce, or about 20,000 employees. This means that on top of the 9,000 job cuts announced in November last year, an additional 11,000 employees will be laid off. The struggling Japanese automaker is striving to turn the tide, but due to its aging car models failing to attract consumers, Nissan has begun laying off staff, reducing production capacity, and replacing most of its senior management, including appointing a new CEO, Ivan Espinosa. After taking over as CEO, Espinosa has started implementing more decisive measures than his predecessor, Makoto Uchida, who was criticized for not being proactive enough in implementing layoffs and production cuts. Furthermore, Nissan's merger plans with Honda failed earlier this year, leaving Nissan in urgent need of finding new partners. The pressure to revive Nissan is immense, especially after the breakdown of merger talks, making the search for a "savior" even more complex. Hon Hai Precision Industry Co., Ltd. (Foxconn) was once a potential partner. Liu Young-way, Chairman of Foxconn, stated in February that Foxconn had approached both Nissan and Honda during their merger discussions, proposing possible cooperation. As the manufacturer of the iPhone, Foxconn has clearly expressed its intention to assemble EVs for Japanese automakers and signed an agreement with Mitsubishi Motors earlier this month to jointly produce EVs. However, Nissan's restructuring efforts face even greater challenges, particularly the potential impact of 450 billion yen from US tariffs on imported cars and parts, further exacerbating the company's difficulties.

Honda Motor (China) Technology Co., Ltd. (HMCT) and CATL recently signed a memorandum of understanding to deepen their strategic collaboration, according to a press release CATL issued on May 16 via...

[CATL, "Prefabricated Vehicle" Partner +1] CATL and Changan Mazda signed a memorandum of cooperation in Shanghai. The two parties will jointly develop smarter and more efficient new energy vehicle (NEV) products based on CATL's CIIC integrated intelligent chassis and Changan Mazda's advantages in complete vehicle manufacturing. Following Avatr, CATL's "prefabricated vehicle" plan has welcomed its first joint venture member.

[Tinci Materials: Currently, the company is actively promoting localized capacity construction in the US and Morocco] Tinci Materials stated on an interactive platform that it is currently actively promoting localized capacity construction in the US and Morocco, continuously expanding overseas markets for electrolytes and LiPF6. (Cailian Press) [Yahua Group: Terminates Lithium Concentrates Offtake Agreement with Core] Yahua Group (002497.SZ) announced that its wholly-owned subsidiary, Yahua International, and Lithium Development, a wholly-owned subsidiary of Core, have signed a "Settlement, Termination, and Release Agreement" to terminate the original Lithium Concentrates Offtake Agreement and its supplementary agreement. The Finniss lithium mine project operated by Core has been suspended, and it is unable to supply lithium concentrates. The company has established a diversified channel layout combining self-controlled mines and externally purchased ore, building a stable lithium resource security system. The termination of this agreement will not impact the company's normal production and operations, nor will it harm the interests of the company and all its shareholders. (Cailian Press) [GM and LG Energy Solution Collaborate to Develop New-Type LMR Prismatic Batteries] General Motors (GM) announced that it, together with LG Energy Solution, will commercialize lithium-rich manganese-based (LMR) prismatic battery cells for future GM electric trucks and full-size SUVs through a new battery technology breakthrough. GM aims to become the first automaker to deploy LMR batteries in EVs. Ultium Cells, a joint venture between GM and LG Energy Solution, plans to commence commercial production of LMR prismatic battery cells in the US by 2028, with pilot production expected to take place at LG Energy Solution's plant by the end of 2027. According to reports, battery engineers from GM and LG Energy Solution have developed a new-type LMR prismatic battery cell that achieves a 33% increase in energy density compared to the best-performing lithium iron phosphate (LFP) battery cells, while maintaining similar costs. (Cailian Press) [BTR: All Solid-State Battery Materials Have Met the Technical Conditions for Mass Production] BTR released a record of investor relations activities, stating that all solid-state battery materials it has developed have met the technical conditions for mass production and can be applied in digital and power applications. However, actual mass production will need to align with the validation cycles and demand rhythms of downstream battery cell manufacturers and end-user automakers. 2024 is a representative year for the semi-solid-state battery system, with actual shipments, installations, and end-use applications of solid-state battery products, indicating that the mass production of semi-solid-state battery materials is expected to occur soon. Currently, the industry generally regards 2027 as the time node for the large-scale mass production of all-solid-state batteries. [Honda Delays Canadian EV Investment Plan by About Two Years Due to Current Slowdown in EV Demand] Due to the current slowdown in EV demand, Honda has delayed its Canadian EV investment plan by about two years. Honda originally planned to establish a comprehensive electric vehicle (EV) industry chain in Canada by investing approximately CAD 15 billion (including investments from joint venture partners), supporting the global initiative to achieve 100% of auto sales from battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) by 2040. [Mazda Delays Release of FY2025 Forecast Due to US Auto Tariffs] Mazda has postponed the release of its consolidated financial forecast for fiscal year 2025 (April 2025 to March 2026). The company believes that the opaque business environment caused by the US government's tariff hikes on automobiles is ongoing, making it "difficult to calculate at this stage." Mazda is considering releasing the fiscal year forecast when it discloses its financial results for April to June 2026, scheduled for early August. Related Readings: [SMM Analysis] Impact of US Tariff Adjustments on China's New Energy End-Users Post-"Geneva Talks"] [SMM Analysis] 2025 Shanghai Auto Show: Intelligence, Luxury, Electrification [SMM Analysis] Sibanye Stillwater's Finnish Lithium Mine Project Costs Surge 17%, Commissioning Plan for 2026 Remains Unchanged Q1 Lithium Carbonate Prices Drop Over 25% YoY, Miners' Performances Vary Wildly: When Will Lithium Prices Rise? [SMM Special Report] [SMM Analysis] SMM's Total Domestic Lithium Carbonate Production in April 2025 Down 7% MoM, Up 40% YoY Salt Lake Potash's Q1 Net Profit Up Over 22% YoY, Aims to Achieve 200,000 mt/Year Lithium Chemicals Capacity by 2030 Auto Parts Sector Soars on First Day Back from Holiday, Jingjin Electric Achieves Three Consecutive Daily Limit-Ups, Market Performs Well During Holiday [Hot Stock] [SMM Analysis] Refined Cobalt Spot Prices Strengthen [SMM Analysis] Cobalt Intermediate Products Spot Prices Rise [SMM Analysis] Refined Cobalt Production Economics Decline, April Refined Cobalt Production Down MoM [SMM Analysis] April Lithium Hydroxide Production Remains Stable to Weak MoM, May Outlook Basically Flat [SMM Analysis] April Ternary Cathode Precursor Production Up 0.36% MoM [SMM Analysis] April Ternary Cathode Material Production Up 7.38% MoM [SMM Analysis] Between Advances and Retreats: Pragmatic Compromises in US Auto Tariff Compensation Policies and Challenges in Global Industry Chain Restructuring [SMM Analysis] April Iron Phosphate Market Stable, Companies Under Pressure, Prices Difficult to Increase Lithium: Driving the Green Revolution, Analyzing How the Industry Chain Reshapes Energy's Future [SMM Popular Science] [SMM Analysis] Driven by LCO Market Demand, April Co3O4 Production Increases Significantly MoM Q1 Auto Industry Starts with Double-Digit Growth in Both Production and Sales, What Are the Expectations for Q2 Amid Tariff Uncertainties? [[SMM Special Report] SMM: Global ESS Market Demand May Reach Around 470 GWh by 2030; How Will Each Market Perform? March's Import and Export Data for Battery Materials Released: Imports of Spodumene and Lithium Carbonate Show One Decrease and One Increase MoM; How Did They Perform? [SMM Special Report] Spot Quotes for Refined Cobalt Continue to Rise; High Raw Material Prices Lead to Production Cuts at Some Smelters; This Cobalt Salt Price May Remain Firm [Weekly Observation]

[5.14 Lithium Battery News] ►Tinci Materials: Currently, the company is promoting localized capacity construction in the US and Morocco. ►Yahua Group: Terminates lithium concentrate off-take agreement with Core Lithium. ►General Motors and LG Energy Solution collaborate to develop new-type LMR prismatic batteries. ►BTR: All solid-state battery materials have met the technical conditions for mass production. ►Honda delays its EV investment plan in Canada by about two years due to the current slowdown in EV demand. ►Mazda delays the announcement of its FY2025 outlook due to US automotive tariffs.