I. Supply-Demand Pattern Shift Puts Iron Ore Prices on a Downtrend In 2021, driven by inflation expectations from global quantitative easing, frequent supply-side disruptions in Brazil and Australia, resilient demand in China, and strong speculative sentiment, iron ore prices hit a record high of $219.77/mt in July that year, with Platts’ annual average price as high as $160/mt ; they then entered a prolonged downtrend. In 2025, the annual average iron ore price was $102, down about 36% from the 2021 average. Source: SMM Iron ore prices have continued to fall in recent years, mainly due to the global project investment boom spurred by high prices before 2021. After 2024, multiple large iron ore projects worldwide entered a concentrated commissioning phase, and the market’s supply-demand pattern shifted from tight to loose, with the supply-demand gap widening from -12 million mt to 46 million mt. Meanwhile, China has implemented crude steel production cuts since 2022, significantly curbing iron ore demand. Coupled with persistent weakness in real estate, an overall downturn in the steel industry, and an overseas economic slowdown, among other factors, iron ore demand declined markedly. Entering 2025, a rebound in China’s steel exports drove iron ore demand to increase slightly, while capacity in emerging steel-producing countries such as Southeast Asia was gradually released, narrowing the supply-demand gap somewhat. Over the long term, however, iron ore supply is still on a growth trend, market expectations remain bearish, and prices are pressured to set new lows repeatedly. Source: SMM (the forecast assumes an extreme balance under normal commissioning of new mines and no voluntary production cuts by mines) II. Mine Costs Form a Solid Bottom Support for Iron Ore Prices From the global iron ore cost curve, about 90% of global mine cash cost is no higher than $85/mt, and about 93.8% is no higher than $90/mt. International mining giants represented by FMG, BHP, Rio Tinto, and Vale have costs far below those in China and other non-mainstream countries, forming the main body on the left side of the cost curve in the chart—low and relatively flat—which explains their strong cost competitiveness and earnings resilience in the global market. At present, the $85-90 cost line is the lifeline for the vast majority of mines; once prices remain below this range for an extended period, high-cost capacity will be forced to exit, thereby supporting prices. China’s iron ore mines due to low raw ore grade and high underground mining costs, among other reasons, currently have a nationwide per-mt processing cost of about 595 yuan/mt, equivalent to around $85 . Its costs have long been at the high end globally, serving as the "anchor point" and "ceiling" of the cost curve. The high cost and low production of China's domestic iron ore mines have led the steel industry to heavily rely on imports for raw materials, and fluctuations in international ore prices directly impact the profit stability of the domestic steel industry. Therefore, promoting domestic resource supply, investing in low-cost overseas resources, and developing steel scrap recycling are crucial for the strategic security of China's steel industry. Data source: SMM III. The global iron ore supply has long been characterized by a landscape dominated by the "Big Four" mines, supplemented by "non-mainstream" mines. Currently, the iron ore production industry is highly concentrated, primarily following a pattern dominated by the "Big Four" mines, supplemented by "non-mainstream" mines. Australia and Brazil have long contributed over half of the global iron ore production. Australia, leveraging advantages such as high resource concentration, low mining costs, and stable supply, firmly holds its position as the world's largest producer and exporter; while Brazil is renowned for its high-grade ore and is the world's second-largest iron ore exporter. Data source: SMM The "Big Four" mines, consisting of Rio Tinto, BHP, FMG, and Vale, have long dominated global iron ore supply, accounting for approximately 70% of global production. Data source: SMM The Rise of Emerging Mines Promoting the Multipolar Development of Global Iron Ore In recent years, India has actively promoted domestic mining development, leading to a significant increase in production; since 2023, its iron ore production has surpassed that of China, and it shows a continuous expansion trend, maintaining an annual growth rate of 7%, gradually becoming a new force in regional supply growth. Emerging enterprises such as India's National Mineral Development Corporation (NMDC) and South Africa's Anglo American are gradually expanding capacity, enhancing their influence in the international market. Meanwhile, countries such as Russia, Kazakhstan, Iran, and regions in Africa are also actively developing domestic iron ore resources, seeking to increase their voice in regional markets, driving the global iron ore supply landscape from high concentration towards gradual multipolar development. Data source: SMM IV. Australia Firmly Holds the Top Spot, India Becomes a New Growth Engine From the perspective of major producing countries, Australia still firmly ranks first globally, with iron ore production of approximately 900 million mt in 2025, accounting for one-third of the global total, and maintaining a stable annual growth rate of about 2%. Brazil ranks second; after the 2019 dam collapse, production once fell sharply. Although it has recovered somewhat over the past two years, the increase has been relatively limited. China’s production scale is relatively large, but due to frequent safety incidents and the continued impact of the environmental protection-driven production restriction policy, production has not increased but instead declined in recent years. By contrast, India, as an emerging producer, has seen production rise steadily over the past decade, and is expected to post an increase of about 7% by 2030. Source: SMM V Over the next three years, the world will usher in a new peak in mine commissioning In addition to supply from existing mines, there are currently multiple large-scale iron ore projects under construction worldwide, with the number of mines expected to be commissioned in 2026 at six, mainly located in Africa and Brazil. Representative projects include Vale’s northern expansion “S11D +20mtpa,” the northern block of Guinea’s Simandou iron ore project, and the Nimba iron ore project. 2026 will be the year with the most concentrated new supply over the next three years. With the northern block of Simandou officially commencing production, the overall capacity ceiling of the mining area will, with capacity ramp-up, rise to 120 million mt, becoming the core incremental source of global iron ore supply over the next five years. From 2027 to 2028, projects expected to commence production will mainly come from China, including the Xi’an Mountain iron ore mine and the Honggenan iron ore mine, adding about 25 million mt of iron ore supply to the domestic market. Overall, as emerging producers continue to release capacity, and traditional suppliers such as Australia and Brazil consolidate their export advantages through expansion projects, the global iron ore supply structure will become more diversified. A new cycle of capacity release has gradually begun, and the loose supply landscape is expected to continue deepening over the next several years. Source: SMM Simandou Project Commissioning Reshaping the Global Iron Ore Supply Landscape Among the many new projects, Africa’s Simandou iron ore is particularly noteworthy. The mine is expected to reach annual capacity of 120 million mt, and the ore’s average grade exceeds 65%, providing the market with a high-grade, high-quality option beyond Australia and Brazil, and becoming an important variable in the recent contest over the global iron ore supply landscape. In terms of project progress, the Simandou iron ore project has entered a substantive shipment phase; as logistics corridors are gradually opened up, the mining area’s substantive impact on global supply will gradually become evident. Source: SMM Nearly 400 million mt of Capacity Release by 2030, Global Iron Ore Market Faces Impact With the entry of emerging producers, iron ore supply is beginning to diversify. Projects led by Simandou iron ore are breaking the industry landscape and taking the iron ore market into a new stage. Looking ahead to the next five years, global iron ore capacity is expected to see a wave of concentrated releases, with incremental supply mainly coming from two major regions: Africa and Australia . Leveraging the development of new high-grade mines such as Simandou, Africa is reshaping the global supply landscape; meanwhile, Australia, relying on its existing capacity base and ongoing expansion projects, is further consolidating its export-dominant position. Overall, the global iron ore supply landscape is evolving toward greater diversification and a looser market. Source: SMM VI Simandou High-Quality Iron Ore Enters the Market; Global Iron Ore Enters an Era of “Quality Upgrading” As some older mines gradually enter a period of resource depletion , coupled with the fact that many newly commissioned projects are dominated by mid- to low-grade ore, the average global iron ore grade shows a downward trend from 2025 to 2026 . However, as high-grade mines such as Simandou are commissioned one after another, the share of high-grade ore supply is expected to increase, and is projected to drive a rebound in the overall global iron ore grade in 2027. Source: SMM VII “Green Steel” Reshapes the Global Crude Steel Production Landscape From a policy perspective, the low-carbon transition represented by “green steel” is profoundly reshaping the global crude steel production landscape . Whether in China or Europe, carbon neutrality has become the core theme for the future development of the steel industry. Therefore, whether it is China’s ongoing capacity replacement policy or the EU’s Carbon Border Adjustment Mechanism (CBAM) that is about to be fully implemented , both clearly indicate that the global steel industry is accelerating its transition toward low-carbon and green development. Achieving carbon neutrality across the entire industry chain is no longer an isolated task for a single link, but must rely on close upstream-downstream coordination and deep integration of technological pathways. Source: SMM Technology Reshaping: Green Iron Supply + Green Production Demand Against the broader backdrop of carbon neutrality, merely maintaining the current supply-demand structure dominated by iron ore can no longer meet future low-carbon requirements. The deeper need of industry transformation lies in reconstructing metallurgical processes: resource-rich countries—such as Australia and Brazil, traditional major iron ore exporters—need to fully leverage their renewable energy endowments and mineral advantages, shifting from simply exporting iron ore to producing high-grade, low-carbon-footprint direct reduced iron (DRI) or hot briquetted iron (HBI) and other high value-added intermediate products. By shipping this clean-energy-driven “green DRI” to steel consumption hubs and integrating it with local green electric arc furnace (EAF) processes, it can effectively replace the traditional “blast furnace–converter” long process, thereby substantially reducing carbon emissions at the source. This multinational collaborative model of “high-quality resources + green energy + short-process” is not only a critical measure to address trade barriers such as the Carbon Border Adjustment Mechanism, but also an essential pathway to build a new global green steel supply chain and drive deep decarbonization across the industry. Data source: SMM Rising Share of Electric-Furnace Steelmaking, Stronger Substitutability of Steel Scrap, Squeezing Iron Ore Demand Driven by carbon-neutrality targets, the steel industry, as a major source of carbon emissions in the industrial sector, has drawn close attention for its emissions-reduction pathway. Among these, the traditional long-process route centered on “blast furnace–converter,” due to its heavy reliance on coke and iron ore, is regarded as a primary source of carbon emissions and has therefore become a key focus of regulation and retrofitting in various countries. By contrast, the short-process route represented by “steel scrap–electric furnace,” with a significantly lower carbon-emissions intensity, is being favoured by an increasing number of countries. This structural shift has driven the share of electric-furnace steelmaking in global crude steel production to continue rising. Data source: SMM From an economic perspective, the substitution relationship between steel scrap and pig iron is typically measured by the price spread. Generally, after factoring in steelmaking costs and losses, pig iron costs should be about 100-150 yuan/mt higher than steel scrap prices ; this range is viewed as the cost-performance equilibrium band: if steel scrap prices are lower than pig iron costs by more than this threshold, steel scrap is more economical; otherwise, pig iron has a more pronounced advantage. In 2025, the average price spread between pig iron and steel scrap was 122 yuan/mt, lower than the 2024 average of 211.8 yuan/mt, and also largely within the cost-performance equilibrium band. By contrast, the 2024 spread was significantly above the upper limit of the equilibrium band, indicating that steel scrap offered a more prominent cost-performance advantage at that time. After the spread narrowed in 2025, the economic advantage of steel scrap weakened somewhat. As a result, in the short term, there is limited room for China to increase the share of electric-furnace steelmaking; overall, it remains at a relatively low level and still lags far behind the global average. This also reflects that, at the current stage, cost factors still impose a substantive constraint on the choice of smelting process routes. Data source: SMM Taken together, the blast furnace–converter long-process route will remain the dominant model for global steel production over the next five years, but the shares of electric furnaces and steel scrap usage will increase year by year; in the long run, this trend will suppress iron ore demand, causing it to weaken gradually. Data source: SMM VIII Global Total Iron Ore Demand in 2030 to Be About 2.4 Billion mt, with Gradual Shifts in Global Flows As China began encouraging domestic steel mills to develop overseas markets while adjusting the domestic industry chain’s transformation toward producing high value-added products needed by the manufacturing sector, global crude steel production began to rebound gradually. Data Source: SMM From the perspective of the global demand structure, although crude steel production outside China is entering a new round of development, with capacity expansion particularly notable in regions such as India and Southeast Asia, a considerable portion of the incremental increase comes from electric furnace processes, providing limited substantive boost to iron ore demand. Meanwhile, as the world’s largest iron ore consumer, China’s crude steel production has entered a downward trajectory, constituting the primary source of demand-side reductions. Overall, overseas increments are unlikely to fully offset China’s reductions. It is expected that by 2030, total global iron ore demand will be approximately 2.4 billion mt, with overall growth trending toward a slowdown. Compared with the mild growth on the demand side, the supply side remains in a phase of continuous expansion. The oversupply landscape will become an important factor that suppresses ore prices over the long term. Data Source: SMM SMM will continue to track the impact of changes in iron ore supply and demand on prices. Comments are welcome—scan the code to follow us! Data Source Statement: Except for publicly available information, all other data are processed and derived by SMM based on publicly available information, market communication, and SMM’s internal database models, for reference only and not constituting decision-making advice. Scan the code to access information for free

On August 26, 2025, FMG reported a 41% decline in annual profit due to weak iron ore prices dragging down earnings, despite record shipment volumes and lower costs highlighting the miner's operational strength. The world's fourth-largest iron ore producer announced a net profit after tax of $3.37 billion for the fiscal year ending June 30, down from $5.68 billion the previous year. Revenue fell 15% to $15.5 billion as the average price of hematite declined 18% to $84.79 per dry metric ton. Similarly, BHP also earlier released a report showing a 26% decline in profit, reaching the lowest level in 5 years. The company also attributed the cause to the decline in iron ore prices.

[SMM Adds New 9990 Magnesium Ingot CIF (Netherlands) Price] To promote the international trade of magnesium ingots, help upstream and downstream enterprises worldwide better grasp market dynamics, obtain timely spot market information, reduce cross-border transaction risks and costs, and deepen research on the magnesium ingot industry chain, SMM will add and publish a new 9990 magnesium ingot CIF (Netherlands) price point starting from June 19, based on comprehensive market surveys, to provide references for the international market.

[SMM Magnesium News] On May 27, the signing ceremony of the "Science and Technology Cooperation Agreement in the Field of Magnesium-Based New Materials" and the unveiling ceremony of the "Jiangxi Industrial Innovation Center of the National Engineering Research Center for Magnesium Alloy Materials" were held in Linchuan District, Fuzhou City, Jiangxi Province. Pan Fusheng, academician of the Chinese Academy of Engineering, honorary director of the National Engineering Research Center for Magnesium Alloy Materials, and chairman of the Chongqing Association for Science and Technology, delivered a speech; Fan Xiaolin, secretary of the municipal party committee, attended the event; Yan Qingsong, secretary of the party group and president of the Jiangxi Academy of Sciences, and Wu Yiwen, deputy director of the Standing Committee of the Municipal People's Congress and secretary of the Linchuan District Party Committee, delivered speeches.

Australian mining giant Fortescue has announced that the full production timeline for its Iron Bridge Magnetite Project in Western Australia is expected to be delayed by nearly three years. The project is anticipated to achieve an annual designed capacity of 22 million mt by the 2028 fiscal year (July 2027 - June 2028, calendar year). According to the latest plan, Fortescue expects annual shipments from the Iron Bridge Project to range from 10 million to 12 million mt in the 2026 fiscal year (July 2025 - June 2026, calendar year). This figure is projected to increase to 16 million to 20 million mt by the 2027 fiscal year (July 2026 - June 2027, calendar year). The ultimate goal is for the project to reach full production capacity of 22 million mt in the 2028 fiscal year (July 2027 - June 2028, calendar year), marking a delay of nearly three years from the previously set target of achieving full production by September 2025 in the 2025 fiscal year. Since its inception, this $3.9 billion project has faced numerous setbacks, including engineering delays and cost overruns. However, Fortescue has stated that the Iron Bridge Project is still on track to meet its shipment guidance target of 5 million to 9 million mt of magnetite concentrate in the 2025 fiscal year. The Iron Bridge Magnetite Project is located in the Pilbara region of Australia, 145 kilometers south of Port Hedland. It is a joint venture development between Fortescue (with a 69% stake) and Formosa Plastics from Taiwan, China (with a 31% stake). Shipments of magnetite concentrate have commenced since 2023. As a cornerstone of Fortescue's product diversification strategy, the project produces high-grade magnetite concentrate (with an iron grade of up to 67%), complementing the low-grade hematite ore primarily mined by Fortescue in the Pilbara region of Western Australia. This helps enhance the company's competitiveness in the high-value-added iron ore market .

Australian mining company Fortescue (FMG) released its operational report for Q1 2025 (Q3 of the 2025 Australian fiscal year), which showed the following: Production: In Q1, FMG's iron ore production reached 55.5 million mt, down 10% QoQ and up 19% YoY. The total iron ore processing volume was 47.6 million mt, down 7% QoQ and up 12% YoY. Shipments: In Q1, FMG's iron ore shipments reached 46.1 million mt, down 7% QoQ and up 6% YoY. Financials: In Q1, FMG's C1 cash cost was $17.53/wmt (based on Pilbara hematite), down 4% QoQ and down 7% YoY. Additionally, the shipment guidance for the 2025 fiscal year is 190-200 million mt, with a C1 cost target of $18.5-19.75/wmt (based on Pilbara hematite).

Solid-state hydrogen storage technology is one of the core directions to break through the bottleneck of hydrogen storage and transportation. Rare earth-based materials (such as AB₅ type hydrogen storage alloys) and magnesium-based materials (such as MgH₂) complement each other in terms of power density, cost, and safety due to their material property differences. In April 2025, breakthroughs in the industrialisation of these two types of materials were frequently seen in the global hydrogen energy sector: the University of Science and Technology of China announced that the atmospheric hydrogen storage density of rare earth hydrogen storage tanks reached 7.2wt%, and ThyssenKrupp in Germany released a magnesium-based hydrogen storage system with a cycle life exceeding 500 cycles. This article, based on this week's industry developments, systematically reviews the technological pathways, scenario adaptability, and industrialisation practices of domestic enterprises for these two types of materials, and explores their collaborative development paths.

【Chinese Automakers' Q1 Auto Sales in Europe Surge 78%】According to Automotive News Europe, Chinese automakers maintained rapid sales growth in Europe during Q1 this year, but EV sales were hindered by the EU's new tariff policy. Preliminary data from market analysis firm Dataforce showed that Chinese auto brands' sales in Europe reached 148,096 units, up 78% YoY, with market share rising from 2.5% in the same period of 2024 to 4.5%. (Gasgoo)

Introduction Solid-state hydrogen storage technology is one of the core directions to break through the bottleneck of hydrogen storage and transportation. Rare earth-based materials (such as AB₅ type hydrogen storage alloys) and magnesium-based materials (such as MgH₂) form a complement in terms of power density, cost, and safety due to their material property differences. In April 2025, global breakthroughs in the industrialization of these two types of materials in the hydrogen energy field were frequent: The University of Science and Technology of China announced that the normal pressure hydrogen storage density of rare earth hydrogen storage tanks reached 7.2wt%, and ThyssenKrupp of Germany released a magnesium-based hydrogen storage system with a cycle life exceeding 500 times. This article, combining this week's industry dynamics, systematically sorts out the technical paths, scenario adaptability, and domestic enterprises' industrialization practices of the two types of materials, and discusses their collaborative development path. I. Rare Earth-Based Solid-State Hydrogen Storage: The "Cornerstone Technology" for High Power Density Scenarios 1. Technical Characteristics and Core Breakthroughs Rare earth-based hydrogen storage materials, represented by LaNi₅ and MmNi₅ (mixed rare earth nickel-based alloys), achieve hydrogen storage through metal hydride reactions. Their technical advantages include: High volumetric hydrogen storage density: Under normal pressure, it can reach 30-35kg/m³ (more than twice that of liquid hydrogen storage), suitable for space-limited scenarios such as passenger vehicles and drones. Wide temperature range stability: Operating temperature range -30℃~100℃, with excellent low-temperature cold start performance (hydrogen absorption completed within 5 minutes). Cycle life: Laboratory level exceeds 10,000 cycles (verified by Toyota's hydrogen heavy truck). Key Advances in April 2025: USTC New Rare Earth-Transition Metal Alloy: Using a CeCo₀.8Ni₀.2 composite system, the hydrogen storage density at 1MPa normal pressure reached 7.2wt%, with a cycle life exceeding 12,000 times, planned for use in the Shanghai Lingang hydrogen bus demonstration project. China Northern Rare Earth Low-Cost Mass Production Line: A production line for 50,000 sets of rare earth hydrogen storage tanks per year was launched in Baotou, Inner Mongolia, using Pr-Nd-based alloys (lanthanum and cerium content >60%), reducing the cost per tank by 40% compared to imported products. GRINM Group Rare Earth-Vanadium Composite Material: Developed a new alloy (V₀.3Ce₀.7), with a hydrogen storage density of 35kg/m³ under 5MPa pressure, suitable for hydrogen-powered ship propulsion systems. 2. Core Application Scenarios and Domestic Practices (1) Dynamic Hydrogen Supply for Fuel Cell Vehicles Technical Adaptability: Rare earth hydrogen storage tanks can meet the high-frequency start-stop requirements of fuel cell vehicles. For example, the Chinese hydrogen heavy truck "HydrogenTeng 3.0" equipped with a rare earth hydrogen storage module achieved an 800km driving range on the Ordos coal transportation line, with hydrogen consumption per 100km reduced by 12% compared to pure hydrogen systems. Latest Case: Shanghai Jieqing Technology and China Northern Rare Earth collaborated to integrate rare earth hydrogen storage tanks into hydrogen refueling station storage systems, compatible with 35MPa hydrogen refueling stations, targeting over 90% localization by 2026. (2) Distributed Power Generation Peak Shaving System Integration Solution: Rare earth hydrogen storage tanks integrated with fuel cells achieve bidirectional "hydrogen-electricity" conversion. Hyzon Motors of Germany launched a 50kW distributed power generation system, capable of stable power supply during peak grid load, with a cycle efficiency of 45%. Domestic Application: Weishi Energy introduced a rare earth hydrogen storage-fuel cell distributed power generation system, suitable for data center backup power scenarios, with response time shortened to 10 seconds. (3) Emergency Power and High-End Equipment Toshiba Solution: A rare earth hydrogen storage tank combined with a 5kW fuel cell forms a backup power source, already deployed in Tokyo data centers. Domestic Breakthrough: Zihuan Environmental developed a rare earth catalyst recycling technology, achieving a recovery rate of lanthanum and cerium >95% through hydrometallurgy, with costs 60% lower than virgin rare earths. II. Magnesium-Based Solid-State Hydrogen Storage: The "Disruptor" for Low-Cost Long-Duration Energy Storage 1. Technical Characteristics and Domestic Breakthroughs Magnesium-based hydrogen storage materials (such as MgH₂) store hydrogen through the reversible reaction of magnesium and hydrogen, with a theoretical hydrogen storage density of 7.6wt%, but slow kinetics (requiring high-temperature activation). The 2025 technological breakthroughs focus on: Nanostructure Modification: Through ball milling, magnesium particles are refined to below 50nm, reducing the hydrogen absorption temperature from 300℃ to 150℃ and increasing the hydrogen absorption rate threefold. Catalyst Optimization: ThyssenKrupp's Ti/Fe bimetallic catalyst increased the cycle life of MgH₂ from 300 to 500 cycles. Key Advances in April 2025: China Energy Engineering Middle East Green Hydrogen Project: Using magnesium-based hydrogen storage tanks to store fluctuating wind and solar power generation, with a hydrogen storage duration of 72 hours, and system costs 40% lower than liquid hydrogen storage. Yunhai Metal 200MWh Annual Production Line: A magnesium-based hydrogen storage tank production line was established in Chizhou, Anhui, using an integrated ball milling-sintering process, with a yield increased to 75%, applied to the Qinghai photovoltaic-hydrogen integration project. Shanghai Magnesium Power Cross-Border Storage and Transportation Solution: In collaboration with Mitsui, a pilot "methane steam reforming for hydrogen-magnesium-based storage" was tested in Dubai, with a magnesium-based hydrogen storage tank capacity of 10MWh, 60% smaller in volume than liquid hydrogen tanks. 2. Core Application Scenarios and Domestic Practices (1) Industrial-Level Long-Duration Energy Storage NEOM New City Project: China Energy Engineering provided a 50MWh magnesium-based hydrogen storage system, smoothing the intermittency of wind and solar power generation, with lifecycle costs 40% lower than liquid hydrogen storage. CATL Rare Earth-Magnesium Composite Hydrogen Storage Material: Developed Mg₂NiH₄/CeO₂ composite material, reducing the hydrogen absorption temperature to 150℃, suitable for heavy trucks on the Ordos coal transportation line, with a driving range increased to 1,000km. (2) Island and Off-Grid Hydrogen Supply Kagoshima Project, Japan: Toray deployed a 5MW electrolyzer + 20MWh magnesium-based hydrogen storage system, providing off-grid community power supply, with lifecycle costs 25% lower than diesel power generation. Domestic Suitable Scenario: Yunhai Metal provided a magnesium-based system for the Qinghai photovoltaic-hydrogen project, storing 48 hours of fluctuating power, with costs 50% lower than liquid hydrogen. (3) Cross-Border Hydrogen Trade Middle East-East Asia LNG to Hydrogen Pilot: Shanghai Magnesium Power and Mitsui collaborated to transport hydrogen in solid form by sea to East Asia, avoiding the high costs and safety risks of liquid storage and transportation. III. Comparison of Technical Paths and Collaborative Development Strategies 1. Performance Parameter Comparison 2. Collaborative Application Scenarios and Domestic Practices (1) Hybrid Hydrogen Storage Systems Hydrogen Refueling Station Scenario: The Anting hydrogen refueling station in Shanghai uses rare earth hydrogen storage tanks to handle frequent vehicle refueling, while magnesium-based hydrogen storage tanks store low-cost green hydrogen, reducing the system cost by 20%. Microgrid Scenario: Rare earth materials meet instantaneous high-power demands (such as fluctuations in photovoltaic power generation), while magnesium-based materials store hydrogen produced from low-cost nighttime electricity. (2) Material Modification Technologies Rare Earth-Magnesium Alloy Development: Such as Mg₂NiH₄ composite material, with a hydrogen storage density of 3.5wt%, and hydrogen absorption temperature reduced to 100℃, now in the pilot stage. Nano-Coating Process: Coating magnesium particles with rare earth oxides (such as CeO₂) inhibits hydride decomposition, increasing the cycle life to 800 cycles. IV. Industrialization Challenges and Policy Opportunities 1. Technological Bottlenecks and Breakthrough Directions Rare Earth-Based: Fluctuations in light rare earth supply (such as lanthanum and cerium) increase costs, requiring the development of cobalt/nickel-free systems (such as iron-based hydrogen storage alloys). Magnesium-Based: Thousand-ton production lines have a yield of less than 60%, requiring breakthroughs in automated ball milling processes and thermal management technologies. 2. Policy and Capital Synergy Domestic Policies: The Ministry of Finance included the R&D of rare earth-based hydrogen storage materials in the subsidy scope, with a maximum subsidy of 5 million yuan per vehicle; magnesium-based hydrogen storage systems receive a subsidy of 0.3 yuan/Wh based on storage capacity. Capital Layout: In Q1 2025, financing in the domestic hydrogen energy sector exceeded 20 billion yuan, with 35% allocated to the solid-state hydrogen storage track, focusing on magnesium-based materials (Yunhai Metal, Magnesium Power) and rare earth catalysts (Zihuan Environmental). V. Future Outlook: From Dual-Drive to Global Competition and Cooperation Short-Term (2025-2030): Rare earth-based materials will dominate transportation and distributed scenarios, while magnesium-based materials will focus on industrial energy storage and cross-border trade. Medium-Term (2030-2035): Rare earth-magnesium alloy materials will be commercialized, and hybrid hydrogen storage systems will become mainstream. Long-Term (Post-2035): Solid-state hydrogen storage, along with liquid hydrogen and organic liquid hydrogen storage, will form a multi-technology route competition, driving the full-chain cost of hydrogen energy close to that of traditional energy. Core Conclusion: Domestic enterprises, through the dual-drive strategy of "rare earths for transportation, magnesium for energy storage," have formed full-chain capabilities in materials, system integration, and cross-border trade. In the future, further breakthroughs in thermal management and large-scale manufacturing are needed to transition solid-state hydrogen storage technology from the laboratory to large-scale application, providing a cost-effective and high-performance Chinese solution for the global hydrogen energy industry.

Australian mining company BHP has released its operational report for Q1 2025 (Q3 of the 2025 Australian fiscal year), which indicates the following: Production: BHP's iron ore production in Q1 2025 was 67.844 million mt, down 7.2% MoM and 0.4% YoY. The main reasons for the decline include the short-term impact of tropical cyclones "Zelia" and "Sean," the phased adverse effects of the railway technology project (RTP1) connection operations, and ongoing production cuts due to the depletion of Yandi resources. Despite these challenges, BHP has maintained its production targets by optimizing production efficiency and structural growth momentum. For example, the Central Pilbara Hub completed capacity ramp-up at the South Flank mine, coupled with optimized handling after the completion of the port debottlenecking project, resulting in a 13% YoY improvement in supply chain efficiency, which became a key driver of production growth. Among them, Mining Area C and Jimblebar mine stood out, with production increasing by 11.8% and 3.4% YoY, respectively, fully reflecting the effectiveness of new capacity releases and operational optimizations. However, the main Newman mine area experienced a 20.2% YoY decline in production due to weather disruptions and a decline in ore quality. Meanwhile, BHP's production resumptions at its Samarco joint venture in Brazil have exceeded expectations since the restart of the second beneficiation plant in December last year. In Q1, iron ore pellet production increased by 11.1% MoM and 39.3% YoY. Based on current progress, Samarco is expected to achieve its annual production capacity target of 16 million mt of pellets ahead of schedule by the end of June this year. BHP has maintained its annual production guidance for Samarco at 5-5.5 million mt (on a 50% equity basis) in its latest quarterly report, but expects actual production to be closer to the upper end of the range. Shipments: BHP's iron ore sales in Q1 2025 were 66.765 million mt, showing a dual decline: down 8% MoM and 4.3% YoY. Among them, fines sales were 40.412 million mt, down approximately 8.2% MoM, and lump sales were 18.822 million mt, down approximately 7.4% MoM. In addition, as of the end of Q1 2025, BHP's production for the 2025 fiscal year was 213 million mt, up 1.1% YoY. BHP's WAIO fiscal year production guidance target remains unchanged at 282-294 million mt (on a 100% basis). Financials: In Q1, FMG's C1 cash cost was $17.53/wmt (based on Pilbara hematite), down 4% MoM and 7% YoY. Furthermore, the shipment target guidance for the 2025 fiscal year is 190-200 million mt, with a C1 cost target of $18.5-19.75/wmt (based on Pilbara hematite).