Zijin Mining's 2025 annual report sent a clear industry signal: its lithium business has officially moved from strategic reserve to the stage of scaled monetization.

Macro News 1. On the evening of June 5, Chinese President Xi Jinping had a scheduled phone call with US President Donald Trump. Xi Jinping pointed out that to steer the course of China-US relations in the right direction, it is crucial for both sides to navigate the ship well and set the right course, particularly by eliminating various distractions and even disruptions. Both sides should enhance exchanges in various fields such as diplomacy, economy and trade, military affairs, and law enforcement, to increase consensus, reduce misunderstandings, and strengthen cooperation. Xi Jinping emphasized that the US should handle the Taiwan issue with caution to prevent a small number of "Taiwan independence" separatists from dragging China and the US into a dangerous situation of conflict and confrontation. 2. On the afternoon of June 5, the Ministry of Commerce held a regular press conference. A reporter asked about the new restrictive measures taken by the US against China. He Yongqian, the spokesperson for the Ministry of Commerce, stated that after the Geneva talks, the US had taken a series of restrictive measures against China, seriously undermining the existing consensus and severely damaging China's legitimate rights and interests. China expressed strong dissatisfaction and firm opposition to this, demanding that the US immediately cease such actions. If the US persists in its course and continues to harm China's interests, China will resolutely take strong measures to safeguard its legitimate rights and interests. 3. On June 5, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter asked about the US's plan to tighten regulations on foreign companies listing in the US. Lin Jian stated that the US should adhere to the market principle of fair competition, stop politicizing economic and trade issues, and provide a fair, just, and non-discriminatory business environment for companies from all countries, including Chinese enterprises. 4. At yesterday's regular press conference, a reporter asked about reports that due to delays in parts procurement caused by China's rare earth export controls, Japanese automaker Suzuki had suspended production of its main compact car in Japan. Lin Jian stated that China's export control measures are in line with international common practices, are non-discriminatory, and are not targeted at specific countries. 5. The People's Bank of China announced that to maintain ample liquidity in the banking system, on June 6, 2025, it will conduct a 1,000 billion yuan outright reverse repo operation through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a term of 3 months (91 days). Industry News 1. The State Council recently issued the "Notice on Conducting the Fourth National Agricultural Census." The Notice states that the main contents of the Fourth National Agricultural Census include agricultural production conditions, grain and food production, new quality productive forces in agriculture, basic conditions of rural development, and the living conditions of rural residents. The standard time point for the census is 24:00 on December 31, 2026, and the period data will be for the year 2026. 2. Following the adjustment of deposit interest rates by the six major state-owned banks on May 20, the "wave of interest rate cuts" has gradually spread to small and medium-sized banks. Small and medium-sized banks, including joint-stock banks, city commercial banks, rural commercial banks, village and township banks, and private banks, have successively followed suit in reducing deposit interest rates, with significant differentiation observed in interest rate adjustments among these banks. During this wave of deposit interest rate cuts, some local rural commercial banks and village and township banks with relatively small scales have experienced "interest rate inversion," where their listed interest rates are even lower than those of large state-owned banks. 3. The national standard "Residential Project Specifications" has garnered widespread attention since its release and implementation. Yao Tianwei, Director of the Standard Quota Department of the Ministry of Housing and Urban-Rural Development, stated on the 5th that building "good houses" does not equate to building "big houses" or "expensive houses." Instead, it involves addressing pain points in housing through good design, construction, materials, services, and more, to comprehensively enhance housing quality. 4. At a regular press conference held by the Ministry of Commerce on the 5th, a reporter posed questions related to the automotive industry. He Yongqian, spokesperson for the Ministry of Commerce, stated that in response to the "cut-throat competition" phenomenon currently present in the automotive industry, the Ministry of Commerce will actively cooperate with relevant departments to strengthen comprehensive rectification and compliance guidance, maintain a fair and competitive market order, and promote the healthy development of the industry. 5. It has been learned from the National Data Bureau that China will deploy and establish 10 national data element comprehensive pilot zones in Beijing, Zhejiang, Anhui, and other regions, supporting localities in conducting pilot initiatives in cultivating market entities, thriving the data market, and fully unleashing the efficiency of the integration between the real economy and the digital economy. 6. According to local time news from the Indonesian military on June 5th, the Indonesian government is conducting a feasibility assessment on the procurement of China-made J-10 fighter jets. Dofanto, Deputy Minister of Defense of Indonesia, stated that this move aims to enhance the modern combat capabilities of the Indonesian Air Force while also considering the cost-effectiveness of the national defense budget. Dofanto pointed out that the performance of China's J-10 fighter jets in the India-Pakistan conflict is one of the important factors considered by Indonesia for this aircraft model. Corporate News 1. Asia Potash International announced that Peng Zhiyun, a supervisor, is under investigation for suspected insider trading. 2. Beijing North Star Technology Group stated on an interactive platform that the company has deep reserves in the underlying blockchain and smart contract technologies for stablecoins. 3. Staidson Biopharma announced that STSP-0601 for injection has been included in the priority review process. 4. ChipMOS TECHNOLOGIES announced that China-Singapore Venture Capital intends to reduce its stake in the company by no more than 2%. 5. Chow Tai Fook announced that Dongguan Group intends to reduce its stake in the company by no more than 3%. 6. Lianhe Chemical Technology released an announcement on the record of investor relations activities, stating that the company's K-amine product has stable gross profit margins and has not yet received any notice of increased customer demand. 7. Wingtech Technology announced that its shareholder, Wuxi Guolian Integrated Circuit Investment Center, plans to reduce its stake in the company by no more than 3%. 8. 3S Bio announced that the New Drug Application for its recombinant anti-IL-1β humanized monoclonal antibody injection has been accepted. 9. Chengdi Xiangjiang announced that its consortium has won the bid for the 440 million yuan data center power system construction project for China Mobile's Zhejiang branch. 10. D&O Home Furnishings announced that its actual controller has signed strategic cooperation and concerted action agreements, and its shares will resume trading today. 11. Fulin Precision Machining announced that its subsidiary has signed a supplementary agreement with CATL to expand capacity cooperation. 12. Zai Lab announced that it has signed an exclusive market promotion service agreement for recombinant human thyroid-stimulating hormone for injection. 13. Paion Biotech announced that it is planning changes to its control rights, and its shares will be suspended from trading starting June 6. 14. Medprism Medical announced that it intends to acquire 100% equity in EasyJet Medical, and its shares will resume trading. 15. Haitai Development announced that it is planning to acquire controlling equity in Zhixueyun, which is expected to constitute a major asset restructuring. 16. Wanchen Group announced that its General Manager Wang Liqing, Deputy General Manager Li Bo, and Deputy General Manager Wang Song plan to reduce their stakes in the company. Global Markets 1. US President Trump expressed that he is "very disappointed" with Musk, who is unhappy with the government's decision to revoke the "mandate" for electric vehicles. Trump claimed that he could win Pennsylvania even without Musk. Musk responded that without him, Trump would lose the election, calling Trump "so ungrateful." 2. The three major US stock indices closed lower collectively, with the Dow Jones falling 0.25%, the Nasdaq dropping 0.83%, and the S&P 500 declining 0.53%. Amid the "feud" between Trump and Musk, Tesla's shares fell more than 14%. The Nasdaq Golden Dragon China Index closed up 0.54%, with popular Chinese ADRs showing mixed performance. 3. WTI crude oil futures closed up 0.83% at $63.37 per barrel. Brent crude oil futures closed up 0.74% at $65.34 per barrel. 4. COMEX gold futures closed down 0.68% at $3,376.1 per ounce. COMEX silver futures closed up 3.31% at $35.7955 per ounce. Investment Opportunities Reference 1. The global exoskeleton robot market is entering a period of rapid growth According to "CAS Voices," the Shenyang Institute of Automation of the Chinese Academy of Sciences has recently developed a "rigid-flexible coupling" multi-joint rehabilitation exoskeleton robot for the lower limbs, which is expected to provide motor function reconstruction and behavioral assistance services for patients with lower limb hemiplegia. Exoskeleton robots are wearable intelligent mechanical devices that, through the collaboration of motors, sensors, control systems, and other technologies, provide power support similar to animal exoskeletons for humans, enhancing or restoring human mobility. They are mainly applied in military, industrial, medical, and civilian fields. According to a research report by Everbright Securities, the global exoskeleton robot market is entering a period of rapid growth. Data from GrandViewResearch shows that the market size reached $1.8 billion in 2024 and is expected to exceed $12 billion by 2030, with a compound annual growth rate of 28%. 2, The National Energy Administration organized the first batch of pilot work for new-type power system construction According to media reports, the National Energy Administration organized the first batch of pilot work for new-type power system construction. Focusing on cutting-edge directions related to the new-type power system, it conducts single-direction pilots based on typical projects and multi-directional comprehensive pilots based on typical cities, exploring new technologies and models for the construction of the new-type power system, and promoting breakthroughs in its development. CICC released a research report stating that State Grid Corporation of China's Q1 power grid investment was up 27.7% YoY, setting a record high for the first quarter. UHV project construction proceeded in an orderly manner, and the tender volume for EHV equipment continued to grow significantly. It remains optimistic about the accelerated construction of the new-type power system, with domestic power grid investment momentum trending upward. 3, Safety requirements for intelligent connected vehicle integrated driving assistance systems were proposed for formulation The National Standard Information Public Service Platform announced a notice soliciting opinions on the proposed mandatory national standard project "Safety Requirements for Intelligent Connected Vehicle Integrated Driving Assistance Systems." The national standard plan "Safety Requirements for Intelligent Connected Vehicle Integrated Driving Assistance Systems" was proposed by MIIT and entrusted to the Intelligent Connected Vehicle Branch of the National Automotive Standardization Technical Committee for execution. With the rapid development of artificial intelligence technology, autonomous driving is undergoing unprecedented transformation. From intelligent perception to precise decision-making, from efficient control to data-driven approaches, AI has injected powerful momentum into autonomous driving. Haitong Securities believes that the main barriers to the development of large-scale autonomous driving models previously included computing power and data loops, with leading enterprises mostly being top tech companies; after Deepseek released a faster inference model, latecomers (including whole vehicle manufacturers and solution providers) may have new opportunities. According to the "Internet of Vehicles White Paper," it is estimated that by 2025, the market size of smart cars in China will approach 1 trillion yuan.

In recent years, the significant fluctuations in lithium prices have subjected enterprises across the industry chain to a rollercoaster of experiences, encompassing both the highs and lows of the market. Although lithium prices have long since lost their former glory, the development prospects of the new energy industry chain remain bright amid the global advocacy 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" region (comprising Bolivia, Argentina, and Chile), boasts over 55% of the world's proven lithium reserves. 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 Chen Siyu, the project manager of SMM's overseas South American lithium resources field trip, and Zhou Zhicheng, a senior analyst in new energy and lithium batteries, the delegation visited South American lithium-related enterprises, toured local lithium ore and material companies, and held discussions with company executives from May 15 to May 26, 2025, to explore potential opportunities in lithium ore resource development, technological exchanges, and investment cooperation. On May 18, SMM and the delegation members headed to Tibet Summit Resources Co., Ltd., the actual controller of Argentina Lithium & Potash Co., Ltd. for in-depth exchanges. Company Profile SMM and the delegation members visited Tibet Summit Resources Co., Ltd., the actual controller of Argentina Lithium & Potash Co., Ltd. . The general manager in charge of Tibet Summit's operations in Argentina warmly received the delegation and provided a detailed introduction to the company's business development. Tibet Summit, positioned in the upstream of the non-ferrous metal resources industry and relying on its lead-zinc polymetallic mine in Tajikistan, has emerged as a benchmark project for successful investments by Chinese enterprises in countries along the "Belt" under the "Belt and Road" Initiative. Meanwhile, the company has commenced investments in upstream lithium salt lake development projects in the new energy industry in Argentina, along the "Road". The company has continuously achieved transformation and upgrading, becoming one of the leading stocks in the mining resource development sector on the securities market. In April 2018, the company, in collaboration with its financial investment partners, acquired and privatized a Canadian publicly listed firm for $206.7 million, thereby gaining full ownership of its two lithium salt lake projects in Argentina, which boast excellent resource endowments and advanced development progress. This marked the company's official entry into the upstream lithium resource development sector of the new energy industry. In Argentina, South America, Tibet Summit indirectly controls Argentina Lithium & Potash Co., Ltd., whose projects in Argentina cover two major lithium salt lake blocks. These projects have completed resource assessments, possess economic viability for mining, are supported by freshwater resources, and have suitable geological conditions, laying a solid foundation for continuous operations and large-scale lithium extraction. It is reported that the Diablillos salt lake project is expected to be completed and put into operation in 2025. Preliminary drilling and oil pumping tests have been completed, and the construction progress is advancing steadily. The project site will adopt a hybrid energy supply model combining PV and diesel to meet both environmental protection and continuous operation needs. The "adsorption + membrane separation" process (DLI process) used in Argentina's salt lake projects significantly differs from the traditional evaporation pond method, offering the following advantages: High lithium recovery rate: The recovery rate reaches 80-90%, placing it at a leading level among similar projects; Shortened production cycle: The entire production cycle is shortened from the traditional 18-24 months to approximately 12 months; Reduced environmental impact: There is no need to construct large-area evaporation ponds, avoiding the occupation of significant land areas and significantly reducing environmental pollution; Flexible and adjustable process: The process can be fine-tuned according to different brine compositions, enabling adaptive extraction of complex brines; Optimized energy consumption: The membrane separation and adsorption processes have lower energy consumption while improving overall process efficiency. In terms of operating costs, according to calculations by the project team, the total production cost per tonne of lithium carbonate using the adsorption + membrane method is expected to be controlled at around 40,000 yuan RMB , significantly lower than that of traditional processes. This also means that when lithium prices remain at 6 yuan RMB/gram (60,000 yuan RMB/mt), the project still maintains strong profitability, with an attractive internal rate of return (IRR) and strong resilience to market cycles. The final products of the aforementioned projects will primarily be lithium carbonate, replacing lithium chloride. Strategies will be flexibly adjusted based on market demand and profitability, without blindly pursuing high-purity products. Focus will be placed on end-use market demand and downstream customer acceptance. In addition, the company also stated that Argentina encourages lithium resource development at the national level, with smooth export channels. Influenced by the international shift in the lithium battery industry chain and price trends, the lithium salt lake projects have good medium and long-term development prospects. Overall, Tibet Summit's lithium salt lake projects in Argentina are international resource development projects with a clear structure, advanced technology, optimized costs, and promising profitability. Through technological innovation, localization efforts, policy adaptation, and the effective export of Chinese experience, the projects possess strong medium and long-term development potential and serve as a replicable model for Chinese enterprises to "go global." Group photo during the field trip After the visit, SMM and members of the field trip team took a group photo together with Tibet Summit Resources Co., Ltd., the actual controller of Argentina Lithium & Potash Co., Ltd., to deepen cooperation and friendship. It is believed that there will be deeper exchanges and cooperation in the future! Following this field trip and survey, SMM and members of the delegation gained a deeper understanding of the business development of Argentina Lithium & Potash Co., Ltd., which is actually controlled by Tibet Summit Resources Co., Ltd. They also gained a more profound understanding of the market status, development trends, and existing issues in the lithium battery industry in South America. They will continue to deepen cooperation with large enterprises to achieve complementary advantages and promote the development of the lithium battery industry.

In the long run, as an important raw material in the new energy battery industry, lithium carbonate, despite facing challenges such as short-term price fluctuations and market competition, still has broad demand prospects driven by the continuous growth of markets like NEVs and ESS.

Amid a market characterized by a supply-demand mismatch, lithium carbonate prices have repeatedly hit new lows. On May 29, the most-traded lithium carbonate futures contract fell below the important threshold of 60,000 yuan/mt, closing at 58,860 yuan/mt. As lithium carbonate prices continue to decline, the hedging demand of industrial enterprises has gradually increased. On May 26, Salt Lake Potash Co., Ltd. announced that it planned to carry out lithium carbonate futures hedging operations to reduce the impact of lithium carbonate price fluctuations on the company's production and operation and effectively hedge against market risks.

Recently, Salt Lake Potash Co., Ltd. (000792) announced that it plans to apply for a project loan of no more than 1.8 billion yuan from a banking consortium composed of five financial institutions, with a loan term of two years. This move aims to accelerate the construction of the 40,000 mt/year integrated basic lithium chemicals project, and meets the conditions for the central government's equipment renewal loan interest subsidy. The company can enjoy a 1.5% interest subsidy annually, thereby reducing financing costs.