[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.

At the 2025 Indonesia Mining Conference & Critical Metals Forum - Nickel, Cobalt, and NEV Session, STJ Budi Santoso, Master of Geology and Chairman of the Indonesian Association of Geologists (IAGI), shared insights on the topic " Exploration Experts Share: Developing Indonesia's Critical Mineral Reserve Potential and Enhancing Downstream Industry Capabilities as Top Priorities ." The Role and Challenges of Exploration Drivers of Exploration: Current and Future State of the Mining Industry Since Q4 2020, most commodity prices have risen, with some reaching multi-year highs. Global metal demand doubles every 20 to 30 years, and media projections suggest cumulative copper demand from 2017 to 2042 could reach 689Mt. Exploration spending is expected to increase by 65% by 2027. Greater Exploration Challenges Current exploration data indicates that the discovery depth for base metals is twice that of gold, while the unit discovery cost for gold mines has doubled over the past decade. For base metals, assuming an exploration budget of $5 million, the probability of a moderate discovery in any given year is less than one in thirty. Thus, exploration is a high-risk/high-reward activity. Exploration Challenge: Discovery-to-Production Ratio Rough estimates show that only 11 of the 229 oil fields discovered since 1990 are currently in production. Exploration Challenge: Time from Discovery to Production Readiness On average, mines take 16.3 years from discovery to production. Despite shorter construction times, the lengthy processes of exploration, permitting, and financing prolong the timeline for mine commissioning. Factors affecting the lead time of geological resource exploration include: Exploration, permitting, and studies; Financing and permitting for open-pit/underground development; Commodity prices. Exploration Challenge: Timing of Exploration and Discovery in Indonesia Most, if not all, existing mineral discoveries are results of exploration under the Work Contract (CoW) and Mining License (KP) systems. Whether the current licensing regime and its subsequent mechanisms can match or surpass these outcomes remains debatable. So far, this seems unlikely. Discovery-to-Production Cycle: Roles of Government and Industry Exploration Overview and Indonesia’s Mineral Resource Inventory Compilation of Indonesian Metal Occurrences, Mineralized Zones, and Mines Consensus on Exploration: Since the 1980s, exploration has primarily been conducted by foreign exploration and mining companies—preparation time; Not all projects have or will have economic viability—high risk, low success rate; Exploration success is measured and reflected through discoveries—a frequently misunderstood aspect; A comprehensive and sustained approach is needed—based on geological surveys, technology, and trust-building; Exploration/mining is a high-risk, long-term business—requiring commitment; Assurance is needed: long-term regulatory certainty—exploration as a critical aspect of sustainable mining. Resources and Reserves of Major Commodities in Indonesia, 2019-2023 Status of Resources and Reserves of Metals in Indonesia Is the current situation sustainable, or is there potential for growth? Conduct systematic and comprehensive exploration, and keep discovering! Nickel Reserves and Consumption in Indonesia: A Case Study of Nickel in 2020 Conclusion Exploration is a high-risk, long-term business that requires a systematic and comprehensive approach, as well as long-term commitment and perseverance. It is a crucial and urgent pillar for the development of a sustainable downstream industry in mining. Without exploration, there will be no resource reserves, and without reserves, sustainable downstream development cannot be achieved. Indonesia is rich in critical and strategic mineral resources. However, as the resources of existing mines gradually deplete, the acceleration of exploration efforts has become increasingly urgent and important. The government authorizes geological agencies to participate in inventory work during the preliminary investigation phase, providing regional 3G data (geological, geophysical, and geochemical) as well as high-quality regional and local prospect maps, due to the economic value of geological information. To achieve reliable inventory, a comprehensive system for reporting exploration results, resources, and reserves must be established, including the following elements: 1. Competent Persons (CPI, CP) with technical expertise and bound by professional ethics. 2. Reputable reporting guidelines/standards, such as the KCMI guidelines and SNI. 3. A spirit of good mining practices, encompassing requirements for environmental protection, Environment, Social, and Governance (ESG), and Sustainable Development Goals (SDGs).

According to SMM data, the production of lithium hydroxide remained basically stable MoM this month, but decreased by over 20% YoY. From the perspective of raw material classification, most production lines of smelting enterprises operated relatively stable. However, against the backdrop of the continuous and significant decline in lithium carbonate prices, some enterprises have made partial adjustments to the production structure of their flexible production lines, resulting in changes to the production ratio of carbon-hydrogen structures. On the causticisation side, after several months of capacity ramp-up, the production output and quality of some enterprises have stabilized, contributing a certain increment to the overall output. This has led to a MoM increase of approximately 30% in causticisation production, although it still decreased by around 20% YoY. Looking ahead to June, some smelting enterprises are expected to halt production for technological transformation, while the production increment from the capacity ramp-up of new production lines in some enterprises will supplement the overall production. Overall, after offsetting the increases and decreases, the overall production remained basically flat MoM, with a YoY decrease of approximately 25%.

Since 2025, Panzhihua Iron and Steel Group Co., Ltd. (hereinafter referred to as "Pangang Group") has embarked on a new journey with high spirits. The cadres and workers have united and exerted their utmost efforts, fully engaging in production work. In Q1, Pangang Group achieved its quarterly targets for operating profits and production of major products, marking a successful start to the year. At the beginning of the new year, Pangang Group systematically deployed its annual work. All units quickly took action, focusing on key tasks, anchoring the 2025 goals, planning implementation roadmaps, and proposing practical new measures. Particularly in strengthening production and operations, Pangang Group researched and formulated work plans and cost optimization schemes for each production line, summarizing and analyzing the operational status of each unit monthly, timely supervising and correcting deviations, striving for ultimate efficiency, cost, and benefits. Pangang Group reinforced the concept of "competition in the market, competitiveness on the ground," strictly adhering to the bottom line of stable production. The Operations Improvement Department and Digitalization Department continuously improved the visualization platform for key operational indicators, enhancing functions such as automatic data collection, achieving interconnected and shared production data, providing accurate data support for quick business decisions and market responses. To ensure the long-term stable operation of blast furnaces, Pangang Group improved equipment risk warning and correction mechanisms, deepened the construction of point inspection and repair systems, continuously tackled equipment issues, and steadily increased the smelting intensity and operational level of blast furnaces. In Q1, Pangang Group achieved its production targets for iron ore concentrates and titanium concentrates, with the 35,000 mt sponge titanium expansion project reaching full production, and the utilization rate of titanium smelting capacity increasing by 6.5 points MoM. Pangang Group's Vanadium Sheet Plant was the first in China to mass-produce 11-aluminum-3-magnesium alloy coated steel sheets for home appliances, with a qualification rate of over 95%. The utilization coefficient of Pangang Group's Vanadium New No. 3 Blast Furnace reached a historical high in February, and the temperature control accuracy of Xichang Steel Vanadium remained stable within ±0.01%, supporting the overfulfillment of production targets for pig iron and crude steel. Good products also require good marketing. Pangang Group strengthened market analysis, conducted in-depth market research, and accurately grasped user needs. By improving market forecasting and response decision-making mechanisms, Pangang Group established highly aligned product marketing plans, maximizing sales of cold-rolled products and increasing sales of automotive steel, home appliance steel, and energy steel. The group also intensified overseas marketing efforts, continuously enhancing product profitability. In Q1, the sales-to-production ratio of sponge titanium, titanium products, and titanium concentrates exceeded 100%, with the sales-to-production ratio of titanium dioxide increasing by 22.4% MoM. Pangang Group advanced the construction of supply chain management systems, continuously optimized resource system layouts, and built a dual-track resource structure of "high strength in the north + high cost performance in the surrounding areas." Through strategic cooperation with leading enterprises and strengthened cooperation with regional suppliers, Pangang Group achieved high cost-performance resource procurement, building a lower-cost, higher-efficiency, and more resilient supply chain system. In Q1, Pangang Group met its procurement cost reduction targets and exceeded basic logistics cost reduction goals. In Q1, Pangang Group showed positive trends in management improvement, technical breakthroughs, industrial transformation, party building, and shared development. Currently, the cadres and workers of Pangang Group continue to hone their skills and rigorously implement work to ensure achieving "half the time, more than half the tasks" in H1. With the deepening of various tasks, Pangang Group will maintain a steady development momentum, laying a solid foundation for the high-quality development of the "New Pangang" and making new and greater contributions to Ansteel Group's accelerated construction of a world-class enterprise.

At the main forum of the 2024 12th Zinc Salt, Zinc Oxide, and Secondary Zinc Raw Materials Trading Forum hosted by SMM, Han Zhen, a senior analyst of lead and zinc at SMM, provided an outlook on zinc price trends for H2.

According to SMM statistics, China's PV module production in July was approximately 46.8GW, down 0.9GW from the previous month, down 1.9% MoM; up 4.1% YoY.