On March 18, the Chairman of Chery Automobile stated that Chery's solid-state battery pilot production line has developed cells with different energy density levels and is currently conducting extensive rigorous testing. Chery's future investment in all-solid-state batteries will have no upper limit. It is reported that Chery's Rhino Battery S series includes a 60Ah, 400Wh/kg solid-state battery utilizing a sulfide-based solid electrolyte system and high-nickel ternary cathode materials; and a 600Wh/kg solid-state battery using an in-situ polymerization solid electrolyte system and lithium-rich manganese-based cathode materials, achieving a range of over 1500+ km.

On March 10, GEM Co., Ltd. disclosed during an investor exchange event that the company has been strategically positioned in the solid-state battery field for some time. Since 2019, it has been developing high-nickel ternary cathode materials and lithium-rich manganese-based cathode materials specifically for solid-state batteries. Currently, shipments of these material systems have reached ton-level quantities.

[Ford Motor: Temporary Production Halt at Some Plants Due to Rare Earth Supply Deficit] Ford Motor CEO Jim Farley stated that the company is still facing a supply deficit of rare earths, leading to temporary production halts at some plants. He revealed that after China implemented a new export approval mechanism, the supply of relevant materials has slowed down significantly, and the current situation is challenging. Ford's Explorer SUV plant in Chicago halted production for a week last month due to a shortage of raw materials. Although there has been positive news from the US-China trade negotiations, Farley noted that there has been no significant improvement in the supply of rare earths so far. He also mentioned that the company has submitted multiple export license applications to China's Ministry of Commerce, which are currently being reviewed one by one. (Gelonghui) [Yahua Group: Plans to Integrate Lithium Business Equity and Transfer It to Yahua Lithium Group] Yahua Group (002497.SZ) announced that to promote the rapid development of its lithium business, it plans to use its wholly-owned subsidiary, Sichuan Yahua Lithium Technology Co., Ltd., as a platform, rename it "Yahua Lithium Group," and transfer the equity of five subsidiaries involved in the lithium business to Yahua Lithium Group without compensation. (Cailian Press) [XTC New Energy Materials (Xiamen): Sales of New Energy Material Products Increased by Approximately 20.95% YoY from January to May] XTC New Energy Materials (Xiamen) (688778.SH) announced that from January to May 2025, the company's new energy material products achieved sales of approximately 47,600 mt, up approximately 20.95% YoY. Among them, LCO sales were approximately 22,300 mt, up approximately 53% YoY, and sales of ternary cathode materials (including LFP and others) were 23,600 mt, up approximately 2% YoY. (Cailian Press) [US Retail Sales in May Record Largest Decline Since the Beginning of the Year] US retail sales in May recorded the largest decline since the beginning of the year, indicating that new tariffs have curbed consumer spending, particularly on automobiles. Data released by the US Department of Commerce on Tuesday showed that after April's data was revised to a 0.1% decline, retail sales in May, unadjusted for inflation, fell by 0.9% MoM. Retail sales excluding automobiles declined by 0.3%. (Cailian Press) [Baoneng Auto Denies Being Liquidated and Dissolved] Baoneng Auto's customer service center WeChat official account issued a statement claiming that recently, some media have distorted facts and maliciously reported that the company and its affiliates have issued dissolution and liquidation announcements, disrupting online order and infringing on the company's legitimate reputation. 1. Although some companies are shown on the National Enterprise Credit Information Publicity System as "the enterprise has issued a dissolution announcement," "the enterprise has filed for liquidation group registration," or "the enterprise is making a business license invalidity declaration," among others, the company's operations remain normal, and new vehicles are expected to be launched soon. 2. Although some senior executives such as directors and supervisors have resigned, it does not affect the company's normal operations and business, and all operations are proceeding as usual without any impact. 3. Please refer to the group's official website for all business information and updates. (Cailian Press) [Xiaomi Auto: No Official Bulk Order Channels or Cash Subsidies Currently Available] Xiaomi Auto stated in its latest Q&A session with netizens on the evening of June 16 that there are currently no official bulk order channels or cash subsidies for Xiaomi Auto. The public is advised not to believe such information or engage in monetary transactions to avoid financial losses. For similar sales-related information, please carefully verify and refer only to official Xiaomi Auto channels. (Cailian Press) Related Reading: Major News in the Auto Market! May Passenger Vehicle Retail and Production Hit Record Highs—Is the Price War Sustainable? 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Nickel prices remained weak, with SHFE nickel futures fluctuating downward. The most-traded contract closed 0.92% lower at 118,570 yuan/mt. The prices of laterite ore from the Philippines remained firm at the ore end, but high-priced ore continued to squeeze the profits of mid- and downstream products, leading to a certain deviation between the trends of nickel ore and the futures market. Nickel prices have continued to weaken recently, approaching the cost of pyrometallurgy and compressing the profits of nickel enterprises. However, there have been no large-scale production cuts by enterprises so far, and the supply surplus situation has not significantly eased. The nickel ore market has been relatively quiet, with ore prices remaining stable. It is expected that nickel ore resources for July will start to be sold this week. In the Philippines, mines are mostly adopting a wait-and-see attitude and are cautious in quoting prices. Some downstream iron plants have entered the raw material procurement and stockpiling period, but due to profit losses, they are not highly willing to accept excessively high nickel ore prices. In Indonesia, the shortage of nickel ore supply persists, with declining ore grades and high prices for high-grade ore remaining. The domestic trade benchmark price for June (Phase II) is expected to fall by approximately $0.3-0.5. The current domestic trade premium remains at 26-28, and subsequent premiums will enter a negotiation period. The end-use demand for new energy is in the off-season, with production schedules for ternary cathode materials in June declining. Battery manufacturers have previously stockpiled sufficient raw materials, resulting in low procurement demand. Nickel sulphate prices have remained firm, maintaining a relatively high level. The tight supply situation for intermediate products at the raw material end continues, with intermediate product prices remaining firm. However, with some nickel iron production lines currently switching to produce nickel matte, the tight supply situation for intermediate products may improve, putting pressure on further nickel sulphate price increases. Downstream ternary cathode manufacturers are not highly willing to accept high-priced nickel sulphate, and with demand remaining weak, nickel sulphate continues to face pressure. In the short term, supported by nickel sulphate costs, industrial profits remain low, and prices are maintained at cost-based pricing levels. Regarding the outlook, Jinrui Futures commented that with the resource end being suppressed by stainless steel, the driving force for cost increases in Class 1 nickel has weakened. Meanwhile, as Indonesia's supply-side policies have become more stable, the sustainability of additional support for Class 1 nickel demand in H2 is in question. The driving force for nickel price increases has weakened, while there is still cost support on the downside. Anchoring on the cost of pyrometallurgical electrodeposited nickel, the price range may converge.

SMM Cobalt Morning Meeting Summary: This week, the spot price of refined cobalt maintained a fluctuating trend. On the supply side, due to the slightly lower economic efficiency of refined cobalt production, the operating rate of smelters remained low, resulting in a slight decline in the supply of refined cobalt. On the demand side, influenced by the policy-related news from the DRC, some smelters and traders reported an increased willingness of downstream producers to inquire about prices. However, currently, most buyers and sellers are still in the negotiation stage, and overall market transactions remain weak. It is expected that before the official implementation of the policy, the spot price of refined cobalt will likely continue to fluctuate.

This week, the prices of ternary cathode material continued to decline. In terms of raw material costs, the price of cobalt sulphate continued to drop slightly, while the prices of nickel sulphate and manganese sulphate remained stable for the time being. Lithium carbonate rebounded to a certain extent due to macro sentiment, while the price of lithium hydroxide still showed a clear downward trend.