Capacity side, according to incomplete statistics, China’s alkaline electrolyzer market remained at 43.77 GW and the PEM electrolyzer market remained at 2.7 GW, with no new capacity added. There was no offline delivery information this week. Project-related updates: Binyang County Haoyuan Industrial Investment Co., Ltd.: Competitive consultation was launched for the Binyang County Green Electricity Hydrogen Production Pilot Construction Project (procurement of hydrogen production equipment and facilities). The budget amount was 2.85 million yuan, with a maximum price limit of 2.85 million yuan. The project entity was Binyang County Haoyuan Industrial Investment Co., Ltd. It is understood that the company is a wholly owned subsidiary of Binyang County Kunpeng Water Affairs Co., Ltd. Kunpeng Water Affairs has registered capital of 448.6 million yuan, and its ultimate controller is the Binyang County Finance Center. Datang Inner Mongolia Duolun Coal Chemical Co., Ltd.: Inquiry-based procurement was conducted for the feasibility study and green methanol certification consulting technical services for the CNCEC Duolun coal chemical coal-based process biomass co-firing coupled with green electricity green methanol production project. It is understood that the Datang Duolun 150,000-kW integrated wind and solar power hydrogen production demonstration project was China’s first medium-to-large-scale technological demonstration project for off-grid wind and solar power hydrogen production deeply coupled with coal chemicals. It was invested in and constructed by Datang Duolun Ruiyuan New Energy Co., Ltd., with a total investment of about 1.3 billion yuan. Construction officially began in November 2023, construction officially began in November 2023, hydrogen was successfully produced on December 29, 2024, and the project was officially connected to the grid and put into operation on January 17, 2025. Shaanxi Construction Engineering Installation Group Co., Ltd.: The Guyang-Baiyun Obo gas transmission pipeline project, undertaken by Shaanxi Installation Group, achieved important progress, with its Guyang initial station and valve chamber successfully passing completion acceptance. It is reported that the gas transmission pipeline project has a 20% hydrogen blending transmission capacity and is a key planned construction project under the “County-to-County Coverage in Western Inner Mongolia” initiative in the Inner Mongolia Autonomous Region’s 14th Five-Year Plan for Oil and Gas Development. The pipeline has a total length of 125 km, starting from the Guyang initial station and running overall from south to north, successively passing through Guyang County, Darhan Muminggan Banner, and the Baiyun Obo mining district in Baotou City, and ultimately reaching Barun Industrial Park. PetroChina Shenzhen New Energy Research Institute Co., Ltd.: It released a processing tender for its brine hydrogen production electrolyzer. Funding for the tender project was self-raised by the enterprise, with a contribution ratio of 100%. It is understood that procurement of necessary raw materials and components includes, but is not limited to, integrated electrolyzer materials such as electrodes, end plates, bipolar plates, separators, and gaskets. Suppliers were also required to provide essential auxiliary electrolyzer accessories such as cooling towers, chillers, and potassium hydroxide in accordance with the purchaser’s requirements. Tianjin Saihong Environmental Engineering Co., Ltd.: A groundbreaking and pile foundation commencement ceremony was held in the Dagang Petrochemical Industrial Park of Tianjin Binhai New Area. It is understood that the project uses the polyploid giant reed “Lüzhou No. 1,” carefully cultivated by Ruihengmao Group, as its core raw material, successfully overcoming the bottlenecks of existing gasification technologies and the economic challenges of biomass raw materials. Tangshan Haitai New Energy Technology Co., Ltd.: recently entered into a strategic cooperation agreement with Beijing Shougang Gas Co., Ltd. During the meeting, Haitai New Energy gave a detailed presentation on the planning layout and current progress of its long-distance hydrogen pipeline project. The two sides then conducted in-depth discussions and exchanges on the development direction of the hydrogen energy industry and successfully signed a strategic cooperation agreement. In view of Shougang Gas’s continuously rising future demand for hydrogen, Haitai New Energy will leverage its comprehensive advantages in hydrogen transportation to provide Shougang Gas with stable and reliable green hydrogen supply services and comprehensive integrated solutions. Shanghai Juna New Material Technology Co., Ltd.: its water electrolysis hydrogen production electrode company, Juna Technology, completed a new round of financing, exclusively invested by CATL, which has become the company’s largest external institutional shareholder at present. Previously, Juna Technology had completed its first round of financing led by Lenovo Star and its second round led by Changjiang Innovation. This round of financing also marked the company’s first introduction of industrial capital. To date, the company has accumulated 8 external institutional shareholders. Shanghai Juna New Material Technology Co., Ltd.: formally signed a strategic cooperation agreement with Zhejiang Sunshine Green Hydrogen Technology Co., Ltd. This cooperation mainly focuses on the industrialisation and deployment of megawatt-class AEM electrolyzers. Leveraging its advanced JE series high performance AEM hydrogen production electrodes, Juna Technology will provide core component support for Sunshine Green Hydrogen in the R&D, testing, and scaled mass production of megawatt-class electrolyzers. Xinjiang Qingda Energy Technology Co., Ltd. : the environmental impact report for its integrated production line project with annual output of 120,000 mt of green hydrogen and 700,000 mt of green ammonia is planned for submission for approval and public disclosure. According to the disclosure, the project is a new-build project located in the western zone of Wusu Industrial Park and invested in and constructed by Xinjiang Qingda Energy Technology Co., Ltd., with a total investment of 4.1914 billion yuan. The project includes extensive construction content, specifically: six water electrolysis hydrogen production unit lines, each with annual output of 20,000 mt, to achieve annual output of 120,000 mt of green hydrogen; meanwhile, one ammonia synthesis unit line with annual output of 700,000 mt to produce 700,000 mt of green ammonia; in addition, one nitrogen production unit line with annual output of 560,000 KNm³ is also planned. In terms of auxiliary facilities, the project will build 6 electrolyzer workshops, 1 office building, 1 circulating water station, 1 central control room, 1 liquid ammonia tank farm, 1 hydrogen tank farm, 1 demineralised water station, and other supporting facilities, with total gross floor area of 127,083.72 m² and total site area of 330,883 m². The construction period is expected to be 12 months. In the water electrolysis hydrogen production segment, the project adopts the alkaline electrolyzer (ALK) hydrogen production process, equipped with 86 2,000-Nm³ electrolyzers, as well as 2 purification units and 2 gas-liquid treatment units, and is expected to produce 120,000 mt of hydrogen annually, mainly as raw material for ammonia synthesis. For the ammonia synthesis unit, the project will build one new unit adopting Casale axial-radial technology, with major equipment including ammonia compressors and synthesis towers, and is expected to produce 700,000 mt of liquid ammonia annually. CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd.: CRRC Zhuzhou Institute successfully won the bid for 8 water electrolysis hydrogen production systems for Phase I of Kaishan Group’s Kenya green fertilizer project. It is understood that this is the first export of CRRC electrolyzer products to Africa and also the world’s first project to produce green hydrogen/ammonia using geothermal new energy. The Kaishan fertilizer project uses geothermal steam from a Kenyan energy company to generate clean electricity, and then uses this clean electricity to produce hydrogen and green ammonia, ultimately producing more than 480,000 mt of green fertilizer. The hydrogen production section of the project uses a total of 90 sets of 1,000 Nm³/h. Xinqing Energy Technology (Fukang) Co., Ltd.: the EPC general contracting tender for the Xinqing Energy photovoltaic hydrogen production coupled resource clean utilisation low-carbon integrated project (chemical section) was recently released. It is reported that the project is located about 28 km east of Fukang City, Changji Prefecture, Xinjiang Uygur Autonomous Region, about 72 km west of Jimusar County, about 7 km north of Ganhezi Town, and adjacent to the east side of Xinjiang Jinxiang Sairui Coal Chemical Technology Co., Ltd. The project plans to build a new 383.3 MW PV power generation system to achieve hydrogen production capacity of 20,000 mt per year, together with a supporting ammonia synthesis system with annual output of 130,000 mt. In addition, one 220 kV step-down substation will also be built. Inner Mongolia Baofeng Coal-Based New Materials Co., Ltd.: Power Station Group has formally signed a cooperation agreement with Inner Mongolia Feng Coal-Based New Materials Co., Ltd. Power Station Group will supply key equipment for the Phase I water electrolysis hydrogen production project of the other party’s wind and solar power hydrogen production project, specifically including 8 alkaline electrolyzers of 1,250 Nm³/h and the world’s largest single-set 5,000 Nm³/h separation and purification system. In addition, Power Station Group will also provide the industry’s first outdoor three-dimensional layout design supporting services. Policy Review 1. Notice of the Ministry of Industry and Information Technology and Three Other Departments on Issuing the Implementation Plan for the High-Quality Development of Energy-Saving Equipment (2026-2028). The document states that by 2028, mass-produced water electrolysis hydrogen production equipment will achieve DC power consumption below 4.2 kWh/Nm³ under rated operating conditions. 2. Notice of the General Office of the National Energy Administration on Issuing the Guidelines for Project Approval of the 2026 Energy Industry Standards Plan. The key areas for project approval under the 2026 energy industry standards plan include 8 items. In the hydrogen energy field, the key directions include fundamentals and general applications, hydrogen production and conversion, hydrogen storage and transportation, hydrogen refueling, hydrogen power and generation, and hydrogen equipment. 3. Notice of the People’s Government of Heilongjiang Province on Issuing the Outline of the 15th Five-Year Plan for National Economic and Social Development of Heilongjiang Province. The document states that Heilongjiang will step up development of the bioenergy industry, foster green liquid fuel industries such as green hydrogen-to-ammonia, green methanol, and green aviation fuel, strive to achieve annual production capacity of 1 million mt of green hydrogen and 3 million mt of green liquid fuels, and accelerate the scaled and commercial development of bio-natural gas. Corporate Developments CIMC Enric Holdings Limited: Yang Baoying, honorary president of its hydrogen business center, and his delegation recently visited Pengfei Group. During the exchange, the two sides held discussions on promoting the implementation of the “hydrogen cylinder replacement” operating model for hydrogen heavy-duty trucks in Lvliang and ultimately reached consensus. This move has injected strong momentum into the commercialisation and scaled promotion of hydrogen heavy-duty trucks, pressing the “fast-forward button.” Yuchai Xinlan (Jiangsu) Hydrogen Energy Co., Ltd. : formally entered into a strategic cooperation agreement with Henan Hitachi Xin Co., Ltd. The two sides will carry out in-depth cooperation around key links in the hydrogen energy industry chain and jointly advance hydrogen technology innovation, product R&D, and market applications. Shaanxi Construction Engineering Installation Group Co., Ltd.: the Guyang first station and valve chamber of the Guyang-Baiyun Obo gas pipeline project, which it constructed, successfully passed completion acceptance. This milestone means that the innovative infrastructure project, equipped with 20% hydrogen blending transmission capability, is on the verge of official operation. It is understood that the Guyang-Baiyun Obo gas pipeline project not only has 20% hydrogen blending transmission capacity, but is also a key planned construction project under the “county-to-county connectivity in western Inner Mongolia” initiative in the Inner Mongolia Autonomous Region’s 14th Five-Year Plan for oil and gas development. The pipeline has a total length of 125 km, starting from the Guyang first station and generally running from south to north, passing through Guyang County, Darhan Muminggan Banner, and Baiyun Obo mining district in Baotou City before finally reaching Barun Industrial Park. Jiangsu Guofu Hydrogen Energy Technology Equipment Co., Ltd. : a delegation from Thailand’s water resources, electricity, and related institutions came to China for exchanges on the new energy industry and made a special trip to Zhangjiagang, Jiangsu, to visit the rooftop PV hydrogen production project jointly developed by ZNShine Solar and Guofu Hydrogen Energy. It is understood that the project relies on a distributed PV system installed on factory rooftops to provide clean and stable electricity for the enterprise’s production and energy applications through PV power generation, balancing efficient energy utilisation and green development. At the same time, it integrates hydrogen application scenarios and is equipped with an ESS to ensure stable energy supply for hydrogen production. It is a leading distributed PV hydrogen production demonstration project in China, showcasing China’s advanced achievements in the integrated development of PV and hydrogen energy. CSIC 712 Research Institute: the 100-kg-class hydrogen-powered hexacopter UAV “Hydrogen Peak No. 1,” which it led in developing, successfully completed its maiden flight. It is understood that Hanhydrogen Power, as the main supplier of the hydrogen supply system for hydrogen fuel cell UAVs, participated in the formulation of T/CEEIA265-2017 Technical Specification for Fuel Cell Fuel Systems of Unmanned Aerial Vehicles by the China Electrotechnical Society. Shanghai Yigong Hydrogen Energy Technology Co., Ltd.: Yigong Hydrogen Energy has seen concentrated batch shipments of its hydrogen compressor products, which have been delivered to project sites across the country for commercial operation. Guofu (Jinan) Hydrogen Energy Technology Development Co., Ltd.: registered capital is 2 million yuan, and the legal representative is Ding Leizhe. Equity information shows that Jiangsu Guofu Hydrogen Energy Technology Equipment Co., Ltd. holds 80% of the company, while Zhejiang Lingniu Yishi New Energy Technology Co., Ltd. holds 20%. Patent Applications 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) disclosed patent CN2025110028, developing a ceramic-based anion exchange membrane with laboratory-tested service life reaching 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing an Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprint/Technical Specifications 1. Professor Yu Ying’s team at Central China Normal University developed a three-dimensional graded nanostructured catalytic electrode, a core component for seawater hydrogen production. 2. Dalian University of Technology designed an electron-pump catalyst with an asymmetric photoresponse structure to maintain asymmetry in electron distribution. 3. Research teams from the School of Electrical Engineering at Xi’an Jiaotong University and the State Key Laboratory of Electrical Materials and Electrical Insulation successfully developed a Ru/Ti3C2Ox@NF bifunctional electrocatalyst for seawater electrolysis. 4. Johnson Matthey and Syensqo achieved efficient recycling and reuse of platinum group metals and ionomers in PEM fuel cells and electrolyzers, significantly reducing carbon footprint. 5. Teams from Xi’an Jiaotong University and Peking University jointly developed a new-type osmium-based catalyst, significantly improving the efficiency and economics of AEM water electrolysis hydrogen production and supporting the scaled deployment of low-cost green hydrogen.

SMM Morning Meeting Summary: Last Friday evening, LME copper opened at $13,474.5/mt, initially fluctuating rangebound and reaching $13,527/mt. Later, the center of copper prices gradually shifted downward, touching $13,290/mt near the end of the session, and finally closed at $13,296/mt, with a gain of 0.28%. Trading volume reached 25,300 lots, and open interest stood at 315,000 lots, down by 497 lots from the previous trading day, mainly due to bears reducing their positions. The most-traded SHFE copper 2604 contract opened at 104,230 yuan/mt, quickly rising to 104,520 yuan/mt, then fluctuated downward, bottoming out at 103,100 yuan/mt, and finally closed at 103,280 yuan/mt, with a gain of 0.45%. Trading volume reached 77,700 lots, and open interest stood at 202,000 lots, down by 2,150 lots from the previous trading day, also characterized by bears reducing their positions.

[POSCO and SK On Form Lithium Alliance for Battery Cooperation] POSCO and SK On have signed a long-term lithium supply agreement, aiming to stabilize the battery materials supply chain. According to a statement released by the two companies on Wednesday, POSCO will supply up to 25,000 mt of lithium from this year until 2028 under the agreement. This supply is sufficient to produce batteries for approximately 400,000 EVs. The lithium will be produced by POSCO Argentina at the Salar del Hombre Muerto salt flat in Salta Province, Argentina, and supplied to SK On's EV battery projects in Europe and North America. SK On is also considering using the material for ESS. Source: https://pulse.mk.co.kr/ [Cornwall's Geothermal Revolution: Extracting Green Energy and Lithium from Granite] The UK's renewable energy sector has achieved a significant leap forward, with a pioneering mini power station in Cornwall officially commencing operation, successfully using underground hot granite to produce zero-carbon electricity and extract high-value battery-grade lithium. Led by Geothermal Engineering Ltd., the project innovatively combines green power generation with critical minerals extraction, is expected to revitalize the region's historic mining economy and supply electricity to thousands of households via the power grid. For East Africa, a region rich in geothermal potential (particularly the Kenyan Rift Valley), the dual extraction technology provides an attractive model. If African energy producers can adopt this approach, simultaneously obtaining electricity and high-profit minerals from geothermal wells, it will significantly enhance the economic feasibility of green energy projects across the continent. Source: https://streamlinefeed.co.ke/ [Zimbabwe Bans Lithium Exports: Global Supply Chain Crisis Emerges] Zimbabwe's recent decision to implement a comprehensive ban on lithium exports marks a watershed moment for the global critical minerals market, highlighting the growing influence of resource nationalism on international supply chains. This policy shift reflects a broader trend: mineral-rich countries are prioritizing domestic value creation over raw material exports, fundamentally altering the landscape of the global battery metals market. The impact extends far beyond a single country; its ripple effects will run through international supply chains, from EVs to renewable energy infrastructure. When countries with significant mineral reserves impose export restrictions, the resulting market dynamics can permanently alter the entire industry's price structures, investment flows, and strategic planning. Zimbabwe's recent decision to suspend mineral exports is a prominent example of this phenomenon. This southern African country, which supplied approximately 10% of the world's lithium resources in 2024, has effectively cut off external supply of its battery metal resources, forcing international buyers to scramble for alternative sources, while domestic processing capacity remains severely underdeveloped. Source: https://discoveryalert.com.au/ [Atlantic Lithium Acquisition Proposal Rejected: 2026 Strategic Value Preservation Strategy] When mature miners pursue mergers and acquisitions during market recovery periods, the core of their strategy shifts from acquiring distressed assets to preserving strategic value. The lithium industry exemplifies this dynamic—during phases of rebounding commodity prices, pre-production developers increasingly tend to reject acquisition proposals, prioritizing long-term value creation over immediate liquidity events. Furthermore, understanding broader critical minerals strategies is essential when assessing these complex market dynamics. Market participants observed that spodumene concentrate prices rebounded from a cyclical low of $800/mt in October 2025 to approximately $1,900/mt by February 2026, a 137.5% increase within four months. This rapid recovery has created a significant valuation gap between acquirers' offers and target companies' intrinsic value assessments. The case of Atlantic Lithium's rejected acquisition proposal demonstrates how pre-production lithium developers evaluate conditional non-binding acquisition offers based on the medium and long-term demand fundamentals in the EV and BESS sectors. Enterprises in the late-stage permitting phase generally believe that current market conditions do not fully reflect the full potential of their asset portfolios. Source: https://discoveryalert.com.au/ [Indian Company Deploys Non-Lithium Multi-Ion Battery System] Mumbai-based battery technology developer Gegadyne Energy stated that its delivery of the first non-lithium multi-ion chemistry battery packs to two of the world's largest material handling original equipment manufacturers marks a true "inflection point" for the forklift industry. Gegadyne has completed the first commercial deployment of its non-lithium multi-ion chemistry battery packs with Linde Material Handling India and the Godrej & Boyce Group. The company claims that this battery, with a cycle life exceeding 5,000 cycles, can be charged from 0% to 100% in 15 minutes, thereby "completely eliminating" dependence on the lithium supply chain. Designed for forklifts, cranes, and warehouse equipment, the battery operates effectively within a temperature range of -40°C to 65°C. Source: https://www.forkliftaction.com/

Futures: Overnight, LME lead opened low at $1,974.5/mt, fluctuated upward during the Asian session; climbed to a high of $1,996/mt during the European session, and finally closed at $1,994.5/mt, up 0.86%. Overnight, the most-traded SHFE lead 2603 contract opened at 16,800 yuan/mt, touched a high of 16,805 yuan/mt early in the session, then weakened and probed lower to 16,700 yuan/mt due to the dual decline in fundamental supply and demand, finally closing at 16,725 yuan/mt, down 0.09%. On the macro front: US January seasonally adjusted non-farm payrolls increased by 130,000, significantly exceeding market expectations and marking the largest increase since April 2025; the unemployment rate unexpectedly fell to 4.3%, hitting a new low since August 2025; following the non-farm data release, traders lowered expectations for US Fed interest rate cuts. The Central Bank of Kenya joined African gold accumulation efforts, planning gold purchases to strengthen buffer capacity. Indonesia plans to cut production at the world's largest nickel mine by 70%. The State-owned Assets Supervision and Administration Commission of the State Council is promoting central state-owned enterprises to actively expand effective investment in computing power. Ministry of Commerce: The prize pool for the lottery invoice event during the 9-day Chinese New Year holiday will exceed 1 billion yuan. : The Chinese New Year atmosphere is strong in the Jiangsu, Zhejiang, Shanghai market, most suppliers have suspended quotations, only a few can offer primary lead cargoes self-picked up from production site, but currently vehicles are scarce, except for a very few ultra-short distances that can barely manage delivery, the vast majority of lead ingots require pick-up after the holiday. Secondary lead spot order prices are sporadic, enterprise transaction willingness is weak, most enterprises have entered the holiday and suspended shipments and quotations. Simultaneously, most downstream enterprises have entered the holiday break, the final batch of lead-acid battery enterprises will also start their holiday this Saturday, downstream inquiries are minimal, and trading in the spot market is light on both sides. Inventory: On February 11, LME lead inventory increased by 200 mt to 232,950 mt. As of February 9, the SMM lead ingot five-region social inventory increased to a five-month high. Today's Lead Price Forecast: Approaching the Chinese New Year holiday, spot quotations continue to decrease, downstream battery enterprises have largely entered the holiday, and lead ingot purchase willingness is sluggish. Supply and demand both decline in the spot market, individual producers offer pre-sale post-holiday pick-up prices, spot order transactions are thin. Downstream battery producers are expected to resume production by late February to early March; post-holiday focus will be on lead ingot inventory buildup and the impact of secondary lead national standard delivery matters on lead price sentiment. Data Source Statement: Data other than public information is processed by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and does not constitute decision-making advice.

The Democratic Republic of the Congo (DRC), the world’s top cobalt supplier (over 70% of global 2024 supply), imposed 2025 export bans/quotas, roiling cobalt prices. With large-scale exports unresumed, the U.S. launched "Project Vault" to secure critical minerals, adding DRC supply uncertainties and heightening geopolitical risks for Chinese cobalt procurement.

Recently, the Indonesian Ministry of Foreign Affairs confirmed its attendance as a supporter at the 2025 Indonesia Mining Conference & Nickel Cobalt New Energy Conference, organized by SMM, which will be held in Jakarta, Indonesia, from June 3 to 5. A summit for government officials from 28 countries will also be convened on June 5. The invited government officials will come from the following 28 countries:

Recently, the Indonesian Ministry of Foreign Affairs confirmed its attendance as a supporter at the 2025 Indonesia Mining Conference & Nickel Cobalt New Energy Conference , organized by SMM in Jakarta, Indonesia, from June 3 to 5, and will also host a summit for government officials from 28 countries on June 5. The invited government officials will come from the following 28 countries: African Countries 1. Democratic Republic of the Congo (cobalt, tin, copper) 2. Gabon (manganese) 3. Madagascar (graphite) 4. Mozambique (graphite) 5. Namibia (zinc) 6. South Africa (rare earths, manganese, zinc, titanium, platinum, chromium) 7. Zambia (copper) 8. Zimbabwe (lithium, nickel) 9. Angola (copper, lithium, manganese, nickel) 10. Kenya (cotton/lignite-titanium ore, niobium, titanium) 11. Guinea Middle East and North Africa 12. Algeria (lithium) 13. Morocco (manganese, zinc) 14. Tunisia (chromium, zinc) South Asia 15. Sri Lanka (graphite, coltan) Southeast Asia 16. Malaysia 17. Myanmar (rare earths, tin) 18. Lao People's Democratic Republic 19. Philippines (cobalt, nickel) 20. Vietnam (tungsten) Latin America and the Caribbean 21. Argentina (lithium) 22. Brazil (nickel, graphite, manganese, tin, bauxite) 23. Bolivia (lithium, tin, tungsten) 24. Chile (lithium, copper) 25. Cuba (nickel, cobalt) 26. Jamaica (bauxite) 27. Mexico (manganese, copper) 28. Peru (copper)

【SMM Breaking News: Iluka of Australia to Collaborate with RareX on Rare Earths】Iluka Resources and RareX announced today that they will collaborate on the Mrima Hill project in Kenya. This will help Iluka provide raw materials for its 23,000 mt/year Eneabba rare earth oxide refinery in Western Australia. They have already established a consortium to advance the Mrima Hill project, which contains rare earths, niobium, and other ores, and is currently owned by the Kenyan government. Iluka plans to use rare earths from Mrima Hill as raw materials to support the production operations of its 23,000 mt/year Eneabba rare earth oxide refinery in Western Australia, which is currently under development.

According to Ivanhoe Mines, Robert Friedland, Executive Co-Chairman, Weibao Hao, Co-Chairman, and Marna Cloete, President and CEO, announced the company's Q1 2025 production results, as well as the significant increase in imported hydropower supply to Kamoa-Kakula in recent weeks, which has significantly boosted copper production and advanced the commissioning of the newly built copper smelter on-site. In mid-March, the imported hydropower capacity was increased by 20 MW to 70 MW. Over the past few weeks, the imported hydropower volume has doubled, and it is expected to further increase to 100 MW soon. Kamoa-Kakula achieved record copper production in the last two weeks of March, with annualized production exceeding the 2025 production guidance target. The mine's outstanding achievements are also attributed to the strong operational performance of the new Phase III beneficiation plant, which set new records in ore processing and copper production, surpassing the designed capacity. Robert Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, commented, "Despite recent global market volatility and panic sentiment leading to declines in stock markets worldwide, Ivanhoe Mines' financial position remains robust, generating strong cash flow. Meanwhile, Kamoa-Kakula is one of the lowest-cost copper mines in the industry, giving us a competitive edge. The modernized one-step copper smelter is expected to further reduce operating costs once it reaches full production this year. The project produces 99.7% copper anode, reducing transportation costs per unit of copper by more than half, significantly lowering C1 cash costs, and generating revenue from the sale of by-product sulphuric acid. Currently, there is a huge demand for sulphuric acid in the DRC." "Fortunately, the power supply difficulties caused by capacity expansion at Kamoa-Kakula are now behind us. We have successfully increased imported hydropower capacity and will soon import a second batch of hydropower from the Southern African Power Pool. We have implemented a long-term energy management plan to ensure our energy mix meets future needs as we move towards becoming one of the world's top large-scale copper producers." "We are fully prepared to officially launch the Kamoa-Kakula smelter, which will be one of the largest and most technologically advanced smelters in the world. Once operational, in addition to exporting copper concentrates, we will also export the most environmentally friendly copper anode required for the global energy transition. Facing the intergenerational issue of copper supply shortages, we will responsibly mine and supply this critical metal to the global market using our own assets, talent, and infrastructure." Kamoa-Kakula Quarterly Production Summary: Kamoa-Kakula produced 133,000 mt of copper in Q1 2025, nearing historical production records, especially in the last two weeks of March, when annualized capacity exceeded 630,000 mt of copper. In Q1 2025, the Phase I, II, and III beneficiation plants processed a record 3.72 million mt of ore, setting a new daily record of 52,000 mt of ore processed at the end of March. The strong performance in Q1 was mainly due to initiatives implemented early in the quarter to continuously supply higher-grade ore to the Phase III plant. The Phase III plant processed a record 1.51 million mt of ore in the quarter, equivalent to an annualized copper processing capacity of 6.1 million mt, more than 20% above the Phase III plant's designed capacity of 5 million mt/year. Despite multiple maintenance shutdowns in the first half of March, the Phase I and II plants maintained excellent performance throughout the quarter. The Phase I, II, and III plants at Kamoa-Kakula averaged daily copper production of 1,509 mt in March, equivalent to an annualized capacity of 550,000 mt of copper. After completing maintenance on the Phase I and II plants, the average daily copper production in the last 14 days of March increased to 1,732 mt, equivalent to an annualized capacity of over 630,000 mt of copper, significantly above the 2025 production guidance range. On March 28, 2025, a record daily copper production of 1,919 mt was achieved. Kamoa-Kakula's annual production guidance target (520,000 - 580,000 mt of copper) remains unchanged. In mid-March, imported power capacity was increased to 70 MW; it is expected to further expand to 100 MW soon. In March, the Phase I, II, and III plants required an average of 130-140 MW of power for combined operations. At the beginning of the month, Kamoa-Kakula added 50 MW of hydropower supply from within the DRC, while importing 50 MW from abroad, with the remaining power supplemented by on-site backup diesel generators, which have a total installed capacity of up to 160 MW. The company signed an agreement in March to import power from Mozambique via the Southern African Power Pool, increasing the total power imported from Zambia by 40% to 70 MW. Kamoa-Kakula's operations team expects to introduce a second batch of imported power in the coming days, further expanding imported power to 100 MW. The increased hydropower capacity has strengthened the confidence of Kamoa-Kakula's management team to complete commissioning and officially start the smelter. The smelter is expected to require 45 MW of power initially, gradually increasing to the designed capacity of 70 MW once operational. Wet commissioning of the Inga II hydropower station's Unit 5 (178 MW) is expected to begin in Q3 2025, with Kamoa-Kakula receiving 50 MW of hydropower from Inga II via the DRC's national grid, gradually increasing to 178 MW after grid upgrades are completed in 2026. The smelter is undergoing commissioning and is expected to start firing the furnace in May, with the first batch of copper anode produced in July. Kamoa-Kakula's 500,000 mt/year one-step copper smelter has begun commissioning and is expected to start operations next month. The initial furnace firing process will take about six weeks, after which the first batch of copper concentrate will be fed, with copper anode production expected to begin in July. By the end of 2025, the smelter is expected to reach about 80% of its designed capacity. As previously announced, it is expected that 20,000 - 30,000 mt of copper concentrate will be stored in the smelter's raw material warehouse before the smelter becomes operational. As of the end of the quarter, Kamoa-Kakula had approximately 48,000 mt of copper inventory pending sale, an increase from the 30,000 mt of copper inventory at the end of 2024. Over the past three months, about 20,000 mt of copper inventory has been added pending sale, as a new batch of concentrate is being stored before the smelter starts operations. The remaining copper concentrate is being processed at the Lualaba Copper Smelter for sale. Once the Kamoa-Kakula Copper Smelter reaches full production, it is expected to maintain 17,000 mt of copper in the smelting process. Most of the ore processed by the Phase III plant comes from underground mines. Kamoa and Kansoko continue to strengthen underground development, opening up enough ore reserves for 18 months of main stope operations. This will provide flexibility for underground mining teams. A similar strategy is being employed at the Kakula underground mine. The Kamoa and Kakula ore bodies have gentle dips, allowing for in-vein development even in lower-grade sections. The underground development at the Kamoa mine is expected to be completed in Q4 2025, at which point the head grade of ore processed by the Phase III plant will increase to over 3%. The "Project 95" initiative aims to increase the overall copper recovery rate of Kamoa-Kakula's Phase I and II plants from the designed 87% to 95%, with a capital expenditure of approximately $180 million, adding an additional 30,000 mt of copper production annually, with an expected capital intensity of about $6,000/mt of copper. Kamoa-Kakula's "Project 95" is progressing well, currently 25% complete, and is scheduled to be completed in Q1 2026. A power purchase agreement has been signed to build a 30 MW PV plant with battery storage at the Kamoa-Kakula mine. Kamoa Copper has signed a power purchase agreement with Cross Boundary Energy ("CBE") in Nairobi, Kenya, to build a 220 MW PV plant and a 123 MVA/526 MWh battery energy storage system (BESS), providing an additional 3,030 MW of environmentally friendly power for Kamoa-Kakula's operations. The PV plant will be funded, owned, and operated by CBE, with the power exclusively purchased by Kamoa Copper. Compared to the on-site backup diesel generators, the PV plant and BESS will reduce carbon emissions by up to 79,000 mt of CO2 equivalent annually. The initial 30 MW PV plant is expected to begin construction in Q3 2025, taking 12 months. Kamoa-Kakula plans to further expand the on-site PV plant to 120 MW, gradually replacing the on-site backup diesel generators. Kipushi achieved a record zinc production of 43,000 mt in Q1 2025, with production ramp-up continuing in Q2. In Q1 2025, the Kipushi beneficiation plant processed a record 151,000 mt of ore, with an average head grade of 32.5%, and produced a record 43,000 mt of zinc concentrate, with a zinc concentrate grade of over 53%. The quarter saw multiple production records, including producing 3,827 mt of zinc in one week and 743 mt of zinc in 24 hours, equivalent to annualized capacities of 200,000 mt and 270,000 mt of zinc, respectively. Kipushi Quarterly Production Summary: With annualized production approaching the 2025 guidance range of 180,000 - 240,000 mt of zinc, the Kipushi beneficiation plant will continue to ramp up production in Q2. Since the beginning of 2025, the plant's average recovery rate has been about 88%, with a zinc concentrate grade of about 53%. The plant achieved ramp-up to full production at the end of February, reaching the designed capacity of 2,000 mt of ore processed per day. Production and plant recovery rates are expected to further improve in the coming months. Kipushi's annual production guidance target (180,000 - 240,000 mt of copper) remains unchanged. Kipushi is on track to complete its expansion plan by the end of Q3 2025, aiming to achieve a zinc production capacity of 250,000 mt/year. The US government reaffirmed its commitment to funding the Lobito Atlantic Railway Company. The US Embassy in Angola issued a statement on March 28, 2025, reaffirming its commitment to funding the Lobito Atlantic Railway Company, which Ivanhoe Mines welcomed. US Ambassador James Story made the statement during his visit to Angola. Ambassador Story and his delegation visited key projects, including the Lobito Port mineral terminal. Ambassador Story stated that the Lobito Corridor is "open for business," and this critical strategic transportation and trade route investment by the US is essential to fully unlock the potential of Angola, Zambia, and the DRC. The U.S. International Development Finance Corporation will invest $553 million in the Lobito Atlantic Railway Company to improve, operate, and maintain Angola's Lobito Railway and mineral port, "to strengthen US strategic interests by securing critical transportation networks and preventing strategic competitors from monopolizing the market." Embassy press release details: https://ao.usembassy.gov/ambassador-james-story-to-visit-the-lobito-corridor-promoting-mutual-prosperity-through-infrastructure-development-and-commercial-activity/ The Lobito Atlantic Railway Company plans to increase its annualized transport capacity from 160,000 mt/year in 2025 to 2 million mt/year by 2030.During the trial operation period from 2025 to date, the average travel time from Kolwezi to Lobito has been 6 to 8 days, while truck transportation by land to Durban, South Africa, or Dar es Salaam, Tanzania, takes from 20 to 25 days. With the gradual increase in carrying capacity, the travel cycle is expected to be further shortened, and the railway company aims to reduce the westward journey to 3.5 to 4 days. From the end of 2023 to date, a total of 28,000 mt of copper concentrates have been transported from Kamoa-Kakula via the Lobito Corridor. In 2025, the export of copper products from Kamoa-Kakula via the Lobito Corridor may increase to 60,000 mt, which is more cost-effective compared to the current land transportation by trucks. Ivanhoe Mines will release its Q1 2025 financial report after the market closes on April 30, 2025, and will hold an investor conference call on May 1. Ivanhoe Mines will announce its Q1 2025 financial results and detailed project progress after the market closes on Wednesday, April 30, 2025. The company will hold an investor conference call on Thursday, May 1, 2025, to discuss the Q1 financial results, with details to be announced later. A webcast recording of the conference call and related presentation materials will be available on the Ivanhoe Mines website: www.ivanhoemines.com. After the release of the Q1 financial report, the financial statements and management's discussion and analysis will be available on www.ivanhoemines.com and www.sedarplus.ca. About Ivanhoe Mines: Ivanhoe Mines is a Canadian mining company advancing its three flagship projects in Southern Africa: the Kamoa-Kakula copper mine in the Democratic Republic of Congo, the Kipushi high-grade zinc-copper-germanium-silver polymetallic mine also in the Democratic Republic of Congo, and the Platreef palladium-nickel-platinum-rhodium-copper-gold mine project in South Africa. Meanwhile, Ivanhoe Mines is exploring for new copper resources within the promising Western Foreland exploration licenses, which Ivanhoe holds 60-100% interests in and covers an area five times that of the adjacent Kamoa-Kakula copper mine. Ivanhoe is searching for new sedimentary copper resources and plans to expand and delineate the high-grade copper resources of its next major development projects, Makoko, Kiala, and Kitoko.

Kenya has launched tenders for two 40 MW solar power projects. Kenya-based consultancy Apex is leading the search for EPC contractors for the 40 MW Isinya solar power plant in Kajiado County and the 40 MW Makueni solar power plant in Makueni County, both located in the southern part of the country.