[SMM Daily Review: Spot Lithium Carbonate Prices Held Steady on September 9] The SMM battery-grade lithium carbonate index stood at 74,589 yuan/mt, up 94 yuan/mt from the previous trading day. Battery-grade lithium carbonate traded at 73,700-75,500 yuan/mt, with an average price of 74,600 yuan/mt, flat from the prior session. Industrial-grade lithium carbonate ranged at 71,750-72,950 yuan/mt, averaging 72,350 yuan/mt, unchanged from the last trading day. Demand side, the market remains in its peak season, sustaining just-in-time procurement by downstream players. However, WoW, procurement activity slowed slightly as futures prices rebounded. Supply side showed structural divergence: spodumene-sourced lithium carbonate accounted for over 60% of production, while lepidolite-derived output dropped to 15%. Overall, September saw synchronized supply and demand growth, but demand expanded faster, likely leading to temporary tightness in the month.

[SMM Analysis: Cathode Material Production Increased MoM in May, While Downstream End-use Demand Growth Remained Sluggish] SMM reported on June 4: In May, total lithium carbonate production decreased by 2% MoM but increased by 15% YoY; lithium hydroxide production remained largely stable MoM but decreased by over 20% YoY; cobalt sulphate production decreased by 13% MoM; Co3O4 production increased slightly both MoM and YoY; ternary cathode precursor production decreased by 3.99% MoM but increased by 4.53% YoY; ternary cathode material production increased by 3.52% MoM and 23.91% YoY; the iron phosphate market remained stable, with production increasing by 2% MoM and 38% YoY; LFP production increased by approximately 6.7% MoM and 43% YoY; LCO production increased by 6% MoM.

[CITIC Securities: Adjusts Forecasted Lithium Price Range to 60,000-70,000 yuan/mt in H2 2025] CITIC Securities' research report indicates that the slowdown in lithium price declines in Q1 2025 led to a slight recovery in overseas lithium ore prices and improved operations at salt lake enterprises, while supply-side exits remained sluggish. Since Q2, as lithium prices fell to 60,000 yuan/mt, industry losses significantly widened, fueling expectations of mine production cuts and a price rebound. However, cost reduction efforts and market share retention objectives have resulted in smaller-than-expected output reductions, suggesting lithium prices will undergo a challenging bottoming process. The forecasted lithium price range for H2 2025 has been adjusted to 60,000-70,000 yuan/mt, with attention recommended on low-cost players likely to benefit from a potential rebound. (Cailian Press) [MIIT and CAAM Address New Round of Automaker Price Wars: "Cut-throat Competition" Has No Winners or Future] On May 31, responding to the recent wave of price wars in the auto industry, CAAM issued the "Proposal on Maintaining Fair Competition and Promoting Healthy Industry Development" (hereinafter referred to as the "Proposal"). Following its release, an MIIT official expressed support for CAAM's Proposal. Price wars among automakers have severely disrupted normal operations, jeopardizing the industry's healthy and sustainable growth. 》Click for details [Lopal Tech Signs 5 Billion yuan LFP Cathode Material Sales Contract with Eve Energy Malaysia Sdn. Bhd.] Lopal Tech (603906.SH) announced that its subsidiary, Lithium Source (Asia Pacific), signed a Production Pricing Agreement with Eve Energy Malaysia Sdn. Bhd., projecting sales of 152,000 mt of LFP cathode materials to Eve Energy and its affiliates from 2026 to 2030, with total contract value exceeding 5 billion yuan. (Cailian Press) 》Click for details [Tibet Mineral Resources Reduces Listing Price by 10% for Second Attempt at Silver Zabuye Equity Transfer] Tibet Mineral Resources (000762.SZ) disclosed that on October 23, 2024, it approved a public listing transfer of 100% equity in Silver Zabuye Lithium Industry, with an initial listing price of 196.5793 million yuan. After failing to identify qualified buyers, the company lowered the price by 10% to 176.9214 million yuan for a second round of listing via the Shanghai United Assets and Equity Exchange. (Cailian Press) [Yongxing Materials: Currently Not Selling Lepidolite Concentrate] Yongxing Materials stated via an interactive platform that it is not currently selling lepidolite concentrate externally, and future sales decisions will be based on comprehensive market assessments. [EVE: The company plans to achieve breakthroughs in the production process of all-solid-state batteries by 2026] EVE stated on an interactive platform that it has already made technological arrangements in the field of solid-state batteries and formulated relevant industrial plans. In the consumer battery sector, the company's gel-state battery solution has been applied to atomizer products, aiming to achieve "food-grade safety." In the power and ESS battery sectors, the company is committed to significantly enhancing battery energy density, safety, and cycle life to drive the rapid development of fields such as EVs and ESS. Currently, the company has completed the development of Ah-level pouch-type sulphide all-solid-state battery samples, and its 100 MWh pilot line is expected to commence operations in 2025. The company plans to achieve breakthroughs in the production process of all-solid-state batteries by 2026, introducing a high-power, highly environmentally resilient, and absolutely safe all-solid-state battery, primarily for use in hybrid power applications. In 2028, it will launch a 400 Wh/kg high-specific-energy all-solid-state battery. (Financial Associated Press) Related Readings: Quotations for cobalt-based products collectively "fall," while cobalt chloride smelters maintain firm quotes, with prices potentially fluctuating at high levels in the future? [Weekly Observation] [SMM Analysis] Impact of US Tariffs on China on Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Approaches: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part I) [SMM Analysis] Impact of US Tariffs on China on Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Approaches: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part II) [SMM Analysis] Impact of US Tariffs on China on Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Approaches: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part III) [SMM Analysis] New Breakthrough in Lithium Battery Technology: Can a Single Injection Extend Battery Life? [SMM Analysis] Lithium Battery Recycling Procurement Continues to Decline in May, Potentially the Sluggiest of the Year [SMM Analysis] Ternary Cathode Material Production Increased by 3.52% MoM in May [SMM Analysis] Ternary Cathode Precursor Production Decreased by 3.99% MoM in May Summary of China's LFP Market in May and Outlook for June [SMM Lithium Battery Market Analysis] [SMM Analysis] SMM's Total Domestic Lithium Carbonate Production in May Decreased by 2% MoM but Increased by 15% YoY [SMM Analysis] Lithium Hydroxide Production in May Remained Steady with a Slightly Stronger Trend, with the Flat Trend Expected to Continue in June [SMM Analysis] Ternary Cathode Precursor Production Decreased by 3.99% MoM in May [SMM Analysis] Supply and Demand for Iron Phosphate Remained Stable in May, with Potential Price Adjustments in June Amid Efforts to Boost Sales Volume [SMM Analysis] Grenergy to Invest 3.5 Billion Euros in BESS Solar and Energy Storage by 2027 It has officially fallen below 60,000 yuan/mt!Lithium Carbonate Futures Hit New All-Time Lows: When Will Prices Bottom Out? [SMM Flash News] Automobile and Parts Sectors Surge, Parts Sector Sees a Wave of "Limit-Up" Trading with Nearly 10 Stocks Hitting Daily Limit [Hot Stocks] [SMM Analysis] REPT Battero and Hyosung Heavy Industries Reach 2.5 GWh ESS Strategic Cooperation Agreement [SMM Weekly Review] Weekly Market Trends for Lithium Ore from 5.26 to 5.29 [SMM Weekly Review] Lithium Carbonate Market Remains Weak, with Prices Continuing to Decline Due to Supply-Demand Imbalance and Weakening Costs [SMM Weekly Review] Weekly Market Trends for Lithium Hydroxide from 5.26 to 5.29 This Week, Negative Electrode Raw Material Coke Prices Show a Downward Trend Due to Demand [SMM Weekly Review of Lithium Battery Negative Electrode Raw Material Market] This Week, Graphitisation Tolling Service Prices Experience a Slight Decline [SMM Weekly Review of Lithium Battery Graphite Market] This Week, Negative Electrode Material Prices Are in a State of Flux [SMM Weekly Review of Lithium Battery Negative Electrode Market] Ternary Cathode Precursor Market Remains Weak [SMM Weekly Review of Ternary Cathode Precursor Market] Market Sentiment for Ternary Cathode Materials Is Poor [SMM Weekly Review of Ternary Cathode Material Market] Spot Prices for Cobalt Intermediate Products Show a Slight Weakening [SMM Weekly Review of Cobalt Intermediate Product Market] [SMM Weekly Review of Power Battery Cell Market on 5.29] Auto Sales Show Some Weakness, with No Upward Expectations for Battery Cell Prices Weekly Summary of LFP Material Market [SMM Weekly Review of Lithium Battery Market] [SMM Analysis] Domestic Lithium Carbonate Imports for April 2025 Released

[6.3 Lithium Battery News] ►CITIC Securities: Adjusts the forecast for the lithium price range in H2 2025 to 60,000-70,000 yuan/mt ►MIIT and CAAM Successively Comment on the New Round of "Price War" in the Automotive Industry: "Cut-throat Competition" Has No Winners, Nor a Future ►Lopal: Signs a 5 billion yuan sales contract for LFP cathode materials with Eve Energy Malaysia Sdn. Bhd. ►Tibet Mineral Development: Lists Baiyin Zhabuye's equity for transfer again at a 10% discount ►Yongxing Materials: Currently does not sell lepidolite concentrates externally

SMM News on May 29: After the opening of the morning session on May 29, lithium carbonate futures prices continued to decline, with the main lithium carbonate contract even dropping to 58,460 yuan/mt at one point during the session, breaching the 60,000 yuan/mt threshold again after the previous trading day and hitting a new all-time low since its listing. In terms of contracts for the same product, multiple contracts such as lithium carbonate 2510, 2511, and 2506 all fell below the 60,000 yuan/mt threshold. In terms of spot quotes, according to SMM's spot quotes, the lowest spot quote for battery-grade lithium carbonate officially fell below the 60,000 yuan/mt threshold today. As of the latest quote on May 29, battery-grade lithium carbonate spot quotes fell to the range of 59,500-62,300 yuan/mt, with an average price of 60,900 yuan/mt, a decrease of 3,900 yuan/mt from 64,800 yuan/mt on May 15, representing a decline of 6.02%. 》Click to view SMM's spot quotes for new energy products Regarding the reasons for the continuous decline in lithium carbonate futures and spot prices, SMM believes it is mainly related to the ongoing supply surplus in the current lithium carbonate market. Against this backdrop of surplus, there is a lack of upward momentum for short-term lithium carbonate price increases. From the perspective of supply and demand, on the supply side, according to SMM, upstream lithium chemical producers frequently reported news of maintenance and production cuts last week. In response to these market developments, some enterprises have indeed implemented maintenance and shutdown plans, while the maintenance schedules of others remain to be further determined. Overall, although the reduction in output due to smelter maintenance has exerted some pressure on the total output of lithium carbonate, the overall supply of lithium carbonate remains at a relatively high level. In contrast to the high supply levels, the demand side for lithium carbonate has shown relatively stable performance. Although there was a certain increase in downstream demand in May, the growth was relatively limited. Moreover, due to the significant proportion of customer-supplied and long-term agreement volumes currently, with the continuous decline in lithium carbonate prices, downstream material plants are generally adopting a cautious wait-and-see attitude, making it difficult for spot orders to support market confidence. In terms of inventory, domestic weekly lithium carbonate sample inventory has continued to climb since February. As of May 22, the weekly lithium carbonate sample inventory had reached 131,779 mt, hitting a new high since August 8, 2024. The sustained high inventory levels have also put pressure on lithium carbonate prices. 》Click to view SMM's database On the cost side, lithium ore prices have continued to decline recently. As of May 29, the spot quote for spodumene concentrates (CIF China) had fallen to $677/mt, a decrease of $168/mt from the low of $845/mt on March 5, representing a decline of 19.88%. Currently, no mines have announced production cuts or shutdowns. The decline in lithium ore prices has weakened the cost support for lithium carbonate, further pushing down lithium carbonate prices. 》Click to view SMM's spot quotes for new energy products Therefore, overall, amid the backdrop of a supply surplus, SMM expects the lithium carbonate market to remain weak in the short term, with prices likely to continue facing downward pressure. Yu Shuo, an analyst at Chuangyuan Futures, estimated that with the release of capacity in regions such as Africa and Brazil, coupled with significant cost reductions in Australian ore in Q1, the costs of major operating mines in Australia have now all fallen below $600/mt. He stated that during the current decline in lithium carbonate prices, there has been no reduction in ore production, and miners have shown a strong willingness to sell. Meanwhile, there has been a substantial inventory buildup of domestic lithium ore, leading to a smooth decline in ore prices, which has driven down the price of lithium carbonate. Yang Fei, a senior researcher in the Non-Ferrous Metals and New Materials Group at CITIC Futures, also noted that recently, after lithium ore prices fell below $700/mt, the rate of decline has slowed somewhat. However, the current ore prices have not yet reached the cost levels of the mines, and no production cuts have been observed. He indicated that in the future, ore prices may continue to test the cost support near $600/mt, which will further push down the price of lithium carbonate. Chuangyuan Futures analyst Yu Shuo predicts that in the short term, lithium carbonate prices may exhibit a volatile downward trend. If spodumene prices fall below $600/mt, it could trigger a halt in Australian ore production, forming a temporary bottom. Attention should be paid to signals of production cuts from the ore sector. However, production cuts from the ore sector are only a signal of a halt in the decline. The long-term market pattern of oversupply will limit the rebound potential of lithium carbonate prices. Only a joint production cut by miners or unexpectedly strong policy stimulus could potentially trigger a significant temporary rebound in lithium carbonate futures. Institutional Commentary Industrial Futures stated that currently, the operating enthusiasm for spodumene production lines is low, while salt lake capacity continues to increase. The extent of supply tightening is relatively limited, and the efficiency of demand transmission is declining at each level. Although NEV retail sales have benefited from policy stimulus, inventory accumulation and poor sales of battery cells in the intermediate links, as well as limited increases in production schedules for cathode material enterprises, have resulted in weak purchase willingness for raw materials by downstream buyers. In-plant inventory at smelters has reached a new high, and the loose fundamental situation continues to exert downward pressure on lithium prices. Dongwu Futures stated that currently, lithium carbonate supply remains high, with inventory approaching the peak level of 2024. Meanwhile, ore prices have softened, and quotes for Australian concentrates have been lowered, weakening the expected cost support. Looking ahead, the oversupply pattern of lithium carbonate remains unchanged, and the market will continue to operate weakly. Yide Futures stated that on the supply side, the CIF quotes for Australian ore continue to fall to $630/mt, while African ore prices have dropped to $614/mt. Port inventory of lithium ore has increased, and the planned production of lithium carbonate nationwide has declined MoM, with the latest weekly production data showing a decrease. Spodumene smelting has reduced, while lepidolite and salt lake production have increased. On the demand side, the production schedules for cathode materials have increased MoM for both ternary and LFP. From the current production schedule, the supply and demand fundamentals still maintain a surplus pattern. In terms of inventory, the latest weekly inventory decreased by 141 mt. A breakdown shows that the increase was concentrated in smelters, while downstream and trader inventories were drawn down. In the short term, with the combination of front-loaded consumption and collapsing costs, the futures market continues to search for a bottom. From a long-term industry perspective, the market requires a more thorough exit of resources from the market. In terms of investment strategy, domestic smelting production cuts have increased, but there has been no action on the resource side. The weakness in fundamentals remains unchanged, and the futures market continues to break through support levels and fall in search of a bottom. Long-term attention should be paid to whether there will be production cuts on the resource side amid low prices. Guoyuan Futures stated that the most-traded lithium carbonate futures contract continued its weak trend in May. At the beginning of the month, downstream orders for May fell short of expectations, with limited WoW growth in production schedules. Coupled with the release of incremental supply following the implementation of lithium resource projects in Q1, the surplus pattern of lithium carbonate persisted, and lithium prices fell sharply. In mid-month, amid fluctuations in Sino-US tariff policies, market sentiment improved, driving a slight rebound in lithium carbonate prices. However, due to the unreversed surplus pattern in the fundamentals of lithium carbonate, after the short-term rebound, lithium prices returned to an in-the-doldrums trend. Overall, it is expected that the supply increment of lithium carbonate will be significant in June, and the cost range will shift downward. On the demand side, the decline in battery cell demand is dragging down the trend, with a clear downward trajectory in cathode production schedules. In terms of inventory, there is limited room for lithium carbonate production cuts, and it is expected that lithium carbonate inventory levels will fluctuate at highs. Overall, with supply remaining high and demand contracting, it is expected that lithium carbonate prices will maintain a fluctuating bottom-building trend in June.

In May 2025, SMM's total lithium carbonate production decreased by 2% MoM and increased by 15% YoY. Due to the significant decline in lithium carbonate prices in May, the monthly average price fell by over 10% MoM compared to April. Some non-integrated lithium chemical plants, unable to withstand the cost pressure, reduced or halted production. Coupled with the production reductions from some lithium chemical plants due to production line maintenance, the total lithium carbonate output in May showed a slight decline, though the overall volume remained at a high level. By raw material type, the total production of lithium carbonate derived from spodumene in May decreased by 4% MoM. Although some lithium chemical plants had reduced their output due to cost issues or production line maintenance, the stable production of integrated enterprises provided strong support for the output of lithium carbonate derived from spodumene, limiting the decline in production. The total output of lithium carbonate derived from lepidolite showed a slight increase, up 2% MoM, benefiting from the continuous ramp-up of production at leading lithium chemical plants. The rising temperatures in salt lake regions in May boosted the output of lithium carbonate, with overall production increasing by 3% MoM. The total output volume in the recycling sector decreased significantly in May, down 16% MoM. The main reason was that, amidst the sharp decline in lithium carbonate prices, the prices of scrap and black mass did not fall in tandem, leading to severe losses for recycling sector lithium chemical plants and a substantial reduction in output. Overall, the total lithium carbonate output in May decreased by 2% MoM and increased by 15% YoY.