[Australia’s Atlantic Lithium Secured Ghanaian Parliamentary Approval to Develop the Ewoyaa Project] Australia’s Atlantic Lithium secured approval from Ghana’s parliament to develop the Ewoyaa project—the country’s first lithium mine—under revised royalty terms linked to market prices. The approved 15-year lease introduced a sliding royalty scale for spodumene concentrates, set at 5% when prices are below $1,500/mt and 12% when they exceed $3,200/mt, replacing Ghana’s previous fixed 10% rate. The new structure followed broader reforms to the lithium and gold royalty framework passed earlier this month, paving the way for the project. The approval formally backed plans for the mine and processing plant, enabling Atlantic Lithium to advance financing discussions and move toward a final investment decision. The project had stalled after lithium prices pulled back from their peak at the end of 2022, prompting the company to push for more flexible fiscal terms. According to the company, Ewoyaa is expected to produce 3.6 million mt of lithium ore concentrates over 12 years, making it Africa’s third-largest lithium project under development. Atlantic Lithium said the project is the only lithium mine development project on the African continent aligned with the US, standing in sharp contrast to other projects backed by Chinese investment. Half of Ewoyaa’s production has been committed to Elevra Lithium, the merged entity of Piedmont Lithium and Sayona Mining, which had previously signed offtake agreements with Tesla and LG Chem. Company executives said details of the work completed in H2 2025 to improve project economics amid continued lithium price fluctuations and help define the next stage of development will be announced soon. Source: https://www.mining [Yahua Group Signed a Five-Year Spodumene Concentrates Procurement Agreement] Yahua Group announced on March 25 that it recently signed an Offtake and Sales Agreement with MGLIT EMPREENDIMENTOS LTDA (“MGLIT” or the “seller”), under which Yahua Group will purchase spodumene concentrates from MGLIT for five years after MGLIT achieves stable production of spodumene concentrates. In each contract year, the seller shall sell and deliver to Yahua Group no less than 120,000 dry metric tons of spodumene concentrates products. The signing of the agreement will provide multi-channel resource security for the company’s production of lithium chemical products. Source: https://www.cls.cn/telegraph [Atacama Salt Lake Expansion Will Drive Chile’s Lithium Production Growth in 2026] Chile is the world’s second-largest lithium producer after Australia. The country’s lithium metal production is expected to rise 10.1% in 2025 to 64,100 mt, mainly supported by higher production from SQM’s Atacama salt lake operations, driven by ongoing capacity expansion. Chile’s lithium production mainly consists of lithium carbonate sourced from brine in the Atacama salt lake in the Antofagasta Region. SQM and Albemarle are the country’s two major lithium producers, underscoring the high concentration of Chile’s lithium production landscape. Looking ahead, as capacity expansion continues to advance, supported by sustained growth in supply from the Atacama salt lake mine, the country’s lithium production is expected to increase by a further 4.9% in 2026 to 67,300 mt. Source: https://www.mining-technology.com/ [Exide Industries Announces Major Investment in Lithium-Ion Battery Cell Manufacturing] Strategic Investment Positioning in the Evolution of India’s Battery Manufacturing Industry Exide Industries’ investment in lithium-ion battery cell manufacturing marks a pivotal moment for India’s battery manufacturing ecosystem. Traditional energy storage enterprises must navigate between the mature lead-acid battery market and emerging opportunities in lithium-ion batteries. The transformation of this industry reflects broader changes in the global energy storage landscape, driven by the electrification trend. The electrification trend demands higher energy density, faster charging capability, and longer cycle life, performance metrics that traditional battery chemistries cannot meet. In addition, the systematic approach to capital deployment in India’s lithium-ion battery cell manufacturing sector reflects a mature investment pace aligned with production milestones and stages of market development. Recent industry developments indicate that established battery manufacturers are using multi-stage financing structures to maximize operational flexibility while minimizing execution risk as much as possible. Source: https://discoveryalert.com.au/

[Ford Motor: Temporary Production Halt at Some Plants Due to Rare Earth Supply Deficit] Ford Motor CEO Jim Farley stated that the company is still facing a supply deficit of rare earths, leading to temporary production halts at some plants. He revealed that after China implemented a new export approval mechanism, the supply of relevant materials has slowed down significantly, and the current situation is challenging. Ford's Explorer SUV plant in Chicago halted production for a week last month due to a shortage of raw materials. Although there has been positive news from the US-China trade negotiations, Farley noted that there has been no significant improvement in the supply of rare earths so far. He also mentioned that the company has submitted multiple export license applications to China's Ministry of Commerce, which are currently being reviewed one by one. (Gelonghui) [Yahua Group: Plans to Integrate Lithium Business Equity and Transfer It to Yahua Lithium Group] Yahua Group (002497.SZ) announced that to promote the rapid development of its lithium business, it plans to use its wholly-owned subsidiary, Sichuan Yahua Lithium Technology Co., Ltd., as a platform, rename it "Yahua Lithium Group," and transfer the equity of five subsidiaries involved in the lithium business to Yahua Lithium Group without compensation. (Cailian Press) [XTC New Energy Materials (Xiamen): Sales of New Energy Material Products Increased by Approximately 20.95% YoY from January to May] XTC New Energy Materials (Xiamen) (688778.SH) announced that from January to May 2025, the company's new energy material products achieved sales of approximately 47,600 mt, up approximately 20.95% YoY. Among them, LCO sales were approximately 22,300 mt, up approximately 53% YoY, and sales of ternary cathode materials (including LFP and others) were 23,600 mt, up approximately 2% YoY. (Cailian Press) [US Retail Sales in May Record Largest Decline Since the Beginning of the Year] US retail sales in May recorded the largest decline since the beginning of the year, indicating that new tariffs have curbed consumer spending, particularly on automobiles. Data released by the US Department of Commerce on Tuesday showed that after April's data was revised to a 0.1% decline, retail sales in May, unadjusted for inflation, fell by 0.9% MoM. Retail sales excluding automobiles declined by 0.3%. (Cailian Press) [Baoneng Auto Denies Being Liquidated and Dissolved] Baoneng Auto's customer service center WeChat official account issued a statement claiming that recently, some media have distorted facts and maliciously reported that the company and its affiliates have issued dissolution and liquidation announcements, disrupting online order and infringing on the company's legitimate reputation. 1. Although some companies are shown on the National Enterprise Credit Information Publicity System as "the enterprise has issued a dissolution announcement," "the enterprise has filed for liquidation group registration," or "the enterprise is making a business license invalidity declaration," among others, the company's operations remain normal, and new vehicles are expected to be launched soon. 2. Although some senior executives such as directors and supervisors have resigned, it does not affect the company's normal operations and business, and all operations are proceeding as usual without any impact. 3. Please refer to the group's official website for all business information and updates. (Cailian Press) [Xiaomi Auto: No Official Bulk Order Channels or Cash Subsidies Currently Available] Xiaomi Auto stated in its latest Q&A session with netizens on the evening of June 16 that there are currently no official bulk order channels or cash subsidies for Xiaomi Auto. The public is advised not to believe such information or engage in monetary transactions to avoid financial losses. For similar sales-related information, please carefully verify and refer only to official Xiaomi Auto channels. (Cailian Press) Related Reading: Major News in the Auto Market! May Passenger Vehicle Retail and Production Hit Record Highs—Is the Price War Sustainable? [SMM Analysis] Three Questions to Instantly Understand ESS [SMM Analysis] Official HS Codes for Black Mass Imports/Exports—How Will It Impact Domestic Lithium Battery Recycling Firms? [SMM Analysis] Automakers Cut Payment Terms to 60 Days—A Major Shift in the Auto Supply Chain [SMM Analysis] Breakthrough in Portugal’s Lithium Mine Project—Europe’s Largest Spodumene Deposit Enters Fast-Track Development Weekly Summary of the LFP Market in June [SMM Lithium Battery Market Analysis] [SMM Analysis] Behind the 60-Day Payment Promise—Suppliers’ Bittersweet Expectations Cobalt Product Prices Continue to Fall—Co3O4 Drops $7,650 in a Single Week—Will the Decline Stop Next Week? [Weekly Review] [SMM Analysis] Rio Tinto Partners with Codelco to Enter Lithium Triangle—$900 Million Investment in World-Class Salt Lake Project [SMM Analysis] Separator Prices Remain Stable [SMM Analysis] Raw Material Drags Prices Down—Policy Window May Trigger a Rebound Battery and Solid-State Battery Sectors Rally Again—Multiple Automakers Announce Latest Progress—Lopal Shares Surge Nearly 6% [Hot Stocks] [SMM Analysis] May Cathode Material Production Rises MoM—Weak End-Use Demand Growth [SMM Analysis] Rising Demand—May Anode Material Production Increases [SMM Analysis] May Co3O4 Production Rises MoM—Industry Adopts Cautious Wait-and-See Approach Cobalt Product Prices Fall Across the Board—Cobalt Chloride Smelter Quotes Hold Firm—Will High Volatility Continue? [Weekly Review] [SMM Analysis] US Tariffs on China—Impact on ESS Cell Export Routes and Pricing (Part 1: Direct from China, Malaysia Transshipment, US Production) [SMM Analysis] US Tariffs on China—Impact on ESS Cell Export Routes and Pricing (Part 2: Direct from China, Malaysia Transshipment, US Production) [SMM Analysis] US Tariffs on China—Impact on ESS Cell Export Routes and Pricing (Part 3: Direct from China, Malaysia Transshipment, US Production) [SMM Analysis] New Breakthrough in Lithium Battery Tech—Can an Injection Extend Battery Life?

►Ford Motor: Temporarily Suspends Production at Some Plants Due to Rare Earth Supply Deficit ►Yahua Group: Plans to Integrate Equity of Lithium Business Companies and Transfer It to Yahua Lithium Group ►XTC New Energy Materials (Xiamen): Sales of New Energy Material Products Increased by Approximately 20.95% YoY from January to May ►US Retail Sales in May Record Largest Decline Since the Beginning of the Year ►Baoneng Auto Denies Being Liquidated and Dissolved ►Mi Auto: Currently, There Are No Official Channels for Bulk Order Bookings or Cash Subsidies for Large Customers

[Yahua Group: Plans to Integrate Equity of Lithium Business Companies and Transfer It to Yahua Lithium Group] Yahua Group announced that, in order to promote the rapid development of its lithium business, it plans to use its wholly-owned subsidiary, Sichuan Yahua Lithium Technology Co., Ltd., as a platform, rename it to "Yahua Lithium Group," and transfer the equity of five subsidiaries involved in the lithium business to Yahua Lithium Group free of charge.

Rare earth permanent magnet concept stocks have been repeatedly active. As of Friday's close, BGRIMM Technology, which focuses on the R&D, production, sales, and services of mining and metallurgical equipment as well as magnetic materials, achieved five consecutive daily limit-ups. Huayang New Materials, whose subsidiary's business scope includes the recycling and utilization of high-magnetic rare earth materials, recorded three consecutive daily limit-ups. On the news front, the Ministry of Commerce stated that it reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications, and will continue to strengthen the approval process for compliant applications. Ma Yan, an analyst at Caida Securities, pointed out in a research report on April 1 that assuming shipments of humanoid robots reach 890,000 units by 2030, the demand for rare earth permanent magnet materials in the humanoid robot sector is projected to reach 3,115 mt. The explosive growth in the market size of humanoid robots is expected to bring broad incremental space to the rare earth permanent magnet industry . Li Chao and Wang Qinyang, analysts at Guojin Securities, pointed out in a research report on February 20 that rare earth permanent magnets, as excellent magnets that currently balance performance and cost, are the top choice for magnetic components in humanoid robots and magnetic materials for low-altitude aircraft , and the dividends from industry chain integration are expected to gradually materialize. Emphasis should be placed on the layout opportunities brought about by "supply-side reform," integration, and the catalyzing effect of humanoid robots. Choice data shows that rare earth permanent magnet concept stocks that received institutional surveys in the past two months (April 14 - June 14) include Sinomine Resource Group, Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Yahua Group, Zhenghai Magnetic Material, DMEGC, Lizhong Group, Zhongju Hi-Tech, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Xinlaifu, China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., Goldwind Science&Technology, Instyle, GEM, Wuchan Zhongda Group, NCS Testing Technology Co., Ltd., Jintian Copper, Yian Technology, Advanced Powder Materials, and Sinosteel NMC . The specific situations are as follows: Among the above-mentioned rare earth permanent magnet concept stocks that received institutional surveys, publicly listed firms that have clearly responded regarding their "rare earth permanent magnet" related business situations mainly include Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Zhenghai Magnetic Material, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Instyle, GEM, and Jintian Copper . Shenghe Resources disclosed an investor relations activity record on June 10, stating that the company maintains a close and good market cooperation relationship with major domestic rare earth concentrate suppliers . In addition, the company has signed long-term supply agreements for rare earth concentrates with Sichuan Hedi Mining, US MP Materials, Peak Rare Earths, and others, establishing a diversified supply channel for rare earth concentrates and providing sufficient raw material guarantees for the company's downstream businesses such as rare earth smelting and separation. Additionally, the imports of ore from Myanmar have been significantly influenced by the local situation, exhibiting fluctuating characteristics. The company will continue to closely monitor the situation of ore from Myanmar. During a survey conducted by institutions on June 13, JL MAG Rare-Earth stated that after the implementation of export control measures on medium-heavy rare earth-related items, the company had initiated export declaration work in accordance with relevant national regulations. It had also successively obtained export licenses issued by national authorities. The export regions include the US, Europe, and Southeast Asia, among others. The company exports magnetic materials, components, and motor rotors in compliance with laws and regulations. The company has established production facilities in Ganzhou, Jiangxi, a major production area for heavy rare earths, and in Baotou, Inner Mongolia, a major production area for light rare earths. The company has established long-term strategic cooperative relationships with major suppliers of rare earth raw materials, including China Northern Rare Earth Group and China Rare Earth Group. In 2024, the procurement amount from these two groups accounted for 63% of the company's total annual procurement. On May 21, Xiamen Tungsten disclosed the record of investor relations activities, indicating that since the second half of 2024, rare earth prices have generally shown a steady upward trend. If this trend continues, the price center of rare earths will gradually rise, and the fluctuation range will narrow compared to the past. In terms of magnetic material capacity layout, Jinlong Rare Earth has achieved an annual production capacity of 12,000 mt at its Changting base and is currently planning new capacity projects at its Changting and Baotou bases. Upon full commissioning of these two projects, Jinlong Rare Earth's magnetic material capacity will reach 22,000 mt. At the performance briefing on May 15, Zhenghai Magnetic Material, when answering the question "What rare earth permanent magnet projects are currently under construction?", stated that the construction of the third phase of 6,000 mt capacity at the company's Nantong base will adjust the investment pace and method in a timely manner based on changes in the external economic environment. The company's sales of high-performance NdFeB permanent magnet materials have achieved seven consecutive years of growth. During a survey conducted by institutions on May 23, Zhong Ke San Huan stated that the current export control measures on medium-heavy rare earth-related items mainly involve the company's NdFeB permanent magnet material products containing dysprosium and terbium. Exporting these products requires declaration and approval before they can be exported. The company has proactively taken measures to initiate export declarations in accordance with relevant regulations at the earliest opportunity, and has already obtained export licenses for a small number of orders. The company's main products are NdFeB permanent magnet materials, which are currently widely used in automobiles (including NEVs), consumer electronics, industrial robots, computers, energy-efficient home appliances, wind power, industrial motors, and other fields. Longi Magnet disclosed the record of investor relations activities on May 27, stating that building a capacity of 60,000 mt for permanent ferrite magnetic tiles has always been a medium and long-term goal . The company will make more optimizations in capacity layout integration, existing capacity utilization, and efficiency improvement, striving to increase capacity through low-cost expansion methods and controlling the pace of capacity release based on downstream demand. The technological transformation and upgrading work at the production sites in Lujiang, Jinzhai, and Vietnam have all shown initial results, and the expected capacity this year will reach 50,000 mt. China Northern Rare Earth stated during an institutional survey on May 21 that the company holds an optimistic view on the future price trend of rare earths . Currently, the upstream supply of rare earths is showing a steady growth trend, thanks to the country's scientific planning and rational development of rare earth resources, as well as the continuous progress in rare earth mining technology. Although the release speed of downstream consumer demand has not met expectations to a certain extent, the fluctuation range of mainstream product prices has significantly narrowed, indicating that the supply-demand relationship is gradually moving towards balance. This balance not only helps stabilize market expectations but also provides a solid foundation for the healthy development of the rare earth industry. On the demand side, the continuous growth in demand for rare earth products in fields such as new energy and high-tech has become a strong driving force for the development of the rare earth industry. During an institutional survey on June 12, Instyle stated that the company's products are mainly delivered through domestic bonded zones and domestic sales channels, and do not involve direct exports to the United States. Export control measures affect businesses involving products containing medium-heavy rare earths dysprosium and terbium, and the company has been handling relevant procedures in compliance with national laws, regulations, and customer order requirements . The company's core competitive advantages mainly lie in its advantages in magnetic circuit design and production manufacturing processes, its advantages in high-quality customer resources, and its advantages in having the origin of rare earths and lower electricity costs in Baotou. GEM stated at the earnings presentation on May 6 that the company has currently conducted technological reserves in the recycling of permanent magnetic materials in the dismantling and recycling field and has reserved the wet process for recycling and synthesizing rare earth oxides. The company has been continuously monitoring the market for rare earth permanent magnets and actively developing the recycling and utilization of rare and scattered metals such as germanium, gallium, indium, and rare earths, as well as expanding the recycling of energy metals like nickel, cobalt, and lithium. Jintian Stock disclosed the record of investor relations activities on May 23, stating that the company has been engaged in the magnetic materials business since 2001. Currently, the company has two magnetic material production sites in Ningbo and Baotou . The first phase of the Baotou site has been put into operation, and the company's annual capacity for rare earth permanent magnets has increased by 4,000 mt on the original basis. The company's rare earth permanent magnet products are widely used in multiple high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robots, consumer electronics, and medical devices.

[Surg e Battery Metals PEA Reveals US$9.2 Billion Nevada Lithium Project] Surg e Battery Metals (SBM) has released a Preliminary Economic Assessment (PEA) for its North Nevada Lithium Project (NNLP), outlining the project's potential to become a low-cost, long-life producer of battery-grade materials for the US market. The PEA, jointly completed by M3 Engineering & Technology Corporation and Independent Mining Consultants, is based on a two-phase construction of the lithium plant to support a conventional open-pit mining operation projected to last 42 years. The report indicates that approximately 205 million mt of mineralized material will be mined over this period, with an average lithium grade of 4016 ppm. Mining will commence from the shallow, high-grade portion of the resource, which currently has an estimated lithium carbonate equivalent (LCE) of 8.65 million mt. The lithium plant will initially process ore at a rate of 2.58 million mt per year in Phase 1, doubling to 5.15 million mt per year in Phase 2, which is expected to come online in Year 4, resulting in an average throughput of 4.88 million mt per year over the life of the mine. Over 42 years, NNLP is projected to produce 86,300 mt of LCE per year, with an average recovery rate of 82.8%. Peak production of 109,100 mt is expected to be reached in Year 6. According to the PEA, the construction cost for Phase 1 is approximately US$2.97 billion, including US$23 million in mine capital expenditure, while Phase 2 is expected to cost an additional US$2.35 billion. Adding US$1.51 billion in sustaining capital, the total project cost will reach US$6.86 billion. Using a base case LCE price of US$24,000 per mt, the study results in an after-tax net present value (at an 8% discount rate) of US$9.21 billion and an internal rate of return of 22.8% for the project. Operating costs are set at US$5,097 per mt of LCE, owing to NNLP's near-surface, high-grade mineralization. The report projects a payback period of 4.7 years for the project. Following the release of the PEA, SBM's share price surged 15.8% to reach CAD$0.33 per share by midday Toronto time, giving the company a market capitalization of CAD$59 million (approximately US$43 million). "NNLP has the potential to become a major low-cost producer of battery-grade lithium carbonate for the US battery industry, and our results today take us a significant step closer to achieving that goal," said SBM CEO Greg Reimer in a press release. "Low operating costs, a good return on investment, and the ability to produce significant quantities of battery-grade lithium carbonate, including a peak of 109,100 mt in a single year, all demonstrate NNLP's first-tier status," he added. Source: mining.com [Zimbabwe to Ban Lithium Concentrates Exports from 2027] Zimbabwe's Minister of Mines, Winston Chitando, announced on Tuesday that the country will ban the export of lithium concentrates starting from 2027 to promote the development of more local processing industries. As Africa's largest lithium producer, Zimbabwe's lithium resources are primarily used in batteries that power renewable energy technologies. In 2022, Zimbabwe banned the export of lithium ore and has been encouraging miners to increase domestic processing. Currently, most of Zimbabwe's lithium mining companies are from China, and they previously mainly exported lithium concentrates to China for further processing. Chitando stated that currently, Bikita Minerals (owned by China's Sinomine Resource Group) and Prospect Lithium Zimbabwe (owned by Zhejiang Huayou Cobalt) are actively developing lithium sulfate plants. Lithium sulfate is an important intermediate product that can be further refined into battery-grade materials, such as lithium hydroxide or lithium carbonate, for battery manufacturing. He pointed out, "As the country's relevant capacity gradually improves, we will completely ban the export of lithium concentrates starting from January 2027." In 2023, Zimbabwe required lithium mining companies to submit plans for building local refineries by March 2024, but this requirement was adjusted due to the sharp decline in metal prices. Sinomine Resource Group and Huayou Cobalt are part of a group of Chinese companies. Since 2021, companies including Chengxin Lithium Group, Yahua Group, and Canmax have invested over $1 billion in total to acquire and develop lithium projects in Zimbabwe. Source: mining.com [Volt Lithium to Deploy Mobile Direct Lithium Extraction Unit in Bakken Region, North Dakota] Volt Lithium Group, soon to be renamed LibertyStream Infrastructure Partners, announced that its proprietary mobile direct lithium extraction ("DLE") unit will undergo final assembly and deployment in the Bakken region of North Dakota, with plans to be put into use in the second half of June 2025. This initiative, in collaboration with Wellspring Hydro ("Wellspring"), has received a total of $2.5 million in funding support from the North Dakota Industrial Commission's Clean and Sustainable Energy Authority and Renewable Energy Program. "Wellspring and the North Dakota government are very excited to commence on-site operations with Volt in North Dakota in the second half of June," commented Mark Watson, President and CEO of Wellspring. "Volt is the only DLE company funded in North Dakota to date," added Mr. Watson. "Based on Volt's successful lithium extraction results at its Calgary R&D facility, both parties are confident in the success of Volt's proprietary lithium extraction unit on-site." The upcoming renaming to LibertyStream Infrastructure Partners reflects the company's strategy of continuing to collaborate with major oilfield infrastructure players in the US, aiming to extract valuable lithium, a critical mineral, from the large volumes of produced water associated with oil and gas production. Key Highlights: Proprietary technology and processes adapt to diverse brine chemistries, facilitating Volt's expansion in the Bakken region of North Dakota. Strategically located in two major oil-producing basins in North America (Permian and Bakken). Permian Potential: Up to 170,000 mt LCE per year. Bakken Potential: Up to 50,000 mt LCE per year, with lithium concentrations nearly three times those of the Permian. Actively building lithium chloride inventory and converting it into high-purity lithium carbonate for potential buyers. Within six months of initial deployment, deployed, expanded, and optimized the largest operational DLE system in North America (over 10,000 barrels per day). Source: junior mining network [Q2 Metals Announces Final Analysis Results of 2025 Winter Drilling Program and Initiates Work on Exploration Targets for the Cisco Lithium Project] Q2 Metals is pleased to announce the remaining analysis results of the 2025 Winter Drilling Program (the "2025 Winter Program") for its Cisco Lithium Project (the "Project" or "Cisco Project") located within the traditional territory of Nemaska in the Eeyou Istchee James Bay region of Quebec, Canada. During the 2025 Winter Program, the Company drilled a total of 14 holes for 6,980 meters, and the analysis results reported herein cover 4,409 meters of drilling data from the last 10 holes. "We are extremely pleased with the final results from these widely spaced holes. Not only did they intercept significant widths and grades, but they also provided us with critical information that will guide subsequent drilling activities. The Cisco Project continues to demonstrate immense potential and is emerging as a significant discovery within one of the world's top mining jurisdictions," said Alicia Milne, CEO and President of Q2 Metals. "We look forward to commencing work on exploration targets, which will provide initial guidance on the potential size, grade range, and relative position of the Cisco Project compared to other major hard-rock lithium projects." "Q2 is in for a busy summer at the Cisco Project. Currently, our team is on-site conducting geological mapping and sampling work, with the first hole expected to commence next week," said Neil McCallum, Vice President of Exploration for Q2 Metals. "The information we have gathered through multiple drilling campaigns is currently under review by BBA Engineering, which is developing an exploration target aimed at quantifying the potential of the main mineralized zones at the Cisco Project. Additionally, three composite samples are undergoing testing by SGS to understand the potential for heavy liquid separation processing capabilities." Hole CS25-028 tested the eastern part of the main mineralized zone and provided additional data for this area. Combined with other drillholes previously drilled in the east, the mineralized zone in this area remains open to the east. Drillhole CS25-030 targeted the deep part of the northern extension of the main mineralized zone, and the results indicate that the mineralized zone is also open in this direction. Drillhole CS25-036 was terminated prematurely before the suspension of the current year's goose hunting season, failing to reach the planned final depth. Nevertheless, the objectives of the drillhole were achieved, intercepting multiple wide pegmatite intervals, which will help determine the geometry of the pegmatite and provide guidance for scale-defining drilling. The drillhole will be restarted during the 2025 summer drilling campaign. Drillholes CS25-029, 031, and 033 targeted the southern extension of the main mineralized zone. Due to a drillhole spacing of 200 meters and a limited number of drillholes on each profile line, pegmatite intervals wider than 100 meters were not intercepted. Although wide pegmatite intervals are expected in this area, further testing is required. It is noteworthy that the pegmatite intervals in the southern drillholes are deeper, and further work will be conducted in this area during the 2025 summer exploration season to test the potential location of the pegmatite plunging to the west. Overall, the main mineralized zone remains open to the south. Drillholes CS25-032, 034, 035, and 037 were used to define the subsurface expression of prominent mineralized carbon dioxide veins. There are still multiple potential directions in this area that have not been tested, requiring further follow-up. Source: junior mining network

The company is advancing the Phase III 'High-Grade Lithium Battery New Energy Materials Production Line Construction Project' of Ya'an Lithium Industry. In 2024, it completed the construction and commissioning of a 30,000 mt lithium carbonate production line. Currently, it is constructing a 30,000 mt lithium hydroxide production line. It is expected that by the end of 2025, the company's comprehensive capacity for lithium chemicals will reach nearly 130,000 mt," Yahua Group revealed recently when accepting a survey from investment institutions.

[Lithium Ore Offtake Agreement Terminated! Yahua Group Receives $2 Million in Compensation] On May 14, Yahua Group issued an announcement stating that its wholly-owned subsidiary, Yahua International, and Lithium Development, a wholly-owned subsidiary of Core, had signed a "Deed of Settlement, Termination, and Release," terminating the lithium concentrates "Offtake Agreement" signed by both parties on March 29, 2019, and the supplementary agreement dated February 16, 2022.

SMM News on May 14: On the evening of May 13, Yahua Group announced that its wholly-owned subsidiary, Yahua International, had signed a "Settlement, Termination, and Release Deed" with Lithium Development, a wholly-owned subsidiary of Core, terminating the original lithium concentrates "Offtake Agreement" and its supplementary agreement. The announcement revealed that in July 2024, Core announced the suspension of operations at its Finniss lithium mine project, with mineral processing having ceased in June 2024. Following mutual agreement, both parties decided to terminate the original lithium concentrates "Offtake Agreement" and its supplementary agreement. As part of the settlement agreement, Core agreed to pay Yahua International a settlement fee of US$2 million. The signing of this agreement can be traced back to March 29, 2019, when Yahua International and Lithium Development, a subsidiary of Core, signed an "Offtake Agreement" for lithium concentrates. The agreement stipulated that from the start of commercial production at the lithium deposit until November 30, 2023, Yahua International would purchase at least 300,000 dmt of lithium concentrates containing approximately 6% lithium oxide from Lithium Development. After the lithium deposit commenced production, Yahua International would purchase at least 75,000 dmt (with a fluctuation of no more than 10%) of lithium concentrates containing lithium oxide annually. Following the termination of the agreement, Yahua Group stated that the termination would not impact the company's lithium resource security. The company has currently established a diversified channel layout combining self-controlled mines and externally purchased ore, constructing a stable lithium resource security system. In terms of self-controlled mines, the company's Phase I and Phase II projects at the Kamativi lithium mine in Zimbabwe were fully completed in 2024, currently capable of processing 2.3 million mt of raw ore annually. Products have been successively shipped back to China for production. In terms of externally purchased ore, the company primarily obtains priority supply rights through equity participation in the Lijiagou lithium mine in Sichuan and secures lithium ore offtake rights through long-term agreements with resources such as Pilbara in Australia, DMCC in Africa, and Atlas in Brazil. These lithium resources can meet the production needs of the company's lithium chemicals capacity. In terms of self-controlled lithium resources, the company holds a 68% controlling stake in the Kamativi lithium mine in Zimbabwe. Currently, the mine has achieved an annual processing capacity of 2.3 million mt of lithium ore, equivalent to approximately 350,000 mt of lithium concentrates, laying the foundation for the long-term stable development of the lithium business. The commencement of operations at self-controlled lithium mines will significantly alleviate the company's reliance on externally purchased ore and help optimize its cost structure within the lithium resource supply chain. The company's Phase II project at Kamativi in Zimbabwe officially commenced production in November 2024. Due to the impact of capacity ramp-up and the transportation cycle from Africa to China, the company's lithium production in Q1 2025 will still primarily rely on externally purchased ore. It is expected that the self-sufficiency rate of lithium concentrates will increase in Q2 2025. Regarding lithium chemical capacity, Yahua Group stated that the company had completed and commissioned a 30,000 mt lithium carbonate production line in 2024. Its current comprehensive lithium chemical capacity stands at 99,000 mt, with 63,000 mt of lithium hydroxide capacity and 36,000 mt of lithium carbonate capacity. It is expected that a 30,000 mt lithium hydroxide production line will be completed in H2 2025, bringing the company's comprehensive lithium chemical capacity to nearly 130,000 mt by the end of 2025. At the end of April, the company released an investor activity survey report, which mentioned that in 2024, the company achieved operating revenue of 7.716 billion yuan, down 35.14% YoY, and net profit attributable to shareholders of publicly listed firms of 257 million yuan, up 539.36% YoY. In Q1 2025, the company achieved operating revenue of 1.537 billion yuan, down 17.03% YoY, and net profit attributable to shareholders of publicly listed firms of 82.4644 million yuan, up 452.32% YoY. Yahua Group adheres to a dual-core business development strategy. During the reporting period, the company's lithium chemical long-term agreement customer orders remained stable, and production lines were gradually constructed and commissioned. Meanwhile, the group leveraged the synergistic effects of overall production, supply, and sales, achieving a good match between purchasing and sales resources. The company capitalized on the capacity and market location advantages of its civil explosives business, actively expanding blasting services while effectively releasing capacity. The prices of major raw and auxiliary materials, such as ammonium nitrate, declined, contributing to the profit growth of the company's civil explosives business. Additionally, the company strengthened control over various aspects of production and operations through cost-reduction initiatives, improving efficiency and effectively achieving cost reduction and efficiency enhancement. It is worth mentioning that previously, the US's reciprocal tariff had a certain impact on the relevant businesses of some companies in the new energy industry chain. Yahua Group was also asked about related issues, to which it responded that the lithium chemical products produced by its existing domestic production lines and delivered to overseas customers were mainly used in batteries or NEVs sold in China and non-US markets. Meanwhile, the company's civil explosives products were not exported to the US. However, according to the latest news, China and the US have reached an agreement to mutually suspend the 24% reciprocal tariff increase for 90 days. SMM understands that, overall, due to exemptions for NEVs and their parts before and after this reciprocal tariff adjustment, the change in reciprocal tariffs will have a greater impact on the export of ESS batteries. This may prompt an expected rush in exports of Chinese ESS battery cells, thereby driving up the demand for lithium carbonate. SMM expects that, given the installation rush demand for ESS at the [grid connection deadline (May 31)] mentioned in China's Document No. 136, the ESS battery cells produced in May may not be able to meet the installation rush in the same month in a timely manner. Therefore, the market previously expected that the production volume of ESS battery cells in May may decrease by 5-10% MoM compared to April. However, influenced by the golden export window period resulting from changes in US tariffs, coupled with the approximately one-month transportation and customs clearance time required from China to the US, it is expected that the production schedules of ESS battery cells for top-tier enterprises will remain at a high level in May and June, with the growth rate of ESS battery cell production expected to turn from negative to positive on a MoM basis. Meanwhile, it is important to note that there are still many uncertainties in the future. After March 3, 2025, Trump adjusted the tariff policies multiple times, resulting in significant uncertainties regarding the effectiveness of the policy cycle after this round of tariff adjustments. Additionally, as the total tariffs imposed by the US on ESS battery cells still amount to 40.9%, remaining at a relatively high level, further negotiations are needed between US owners and Chinese ESS producers regarding the proportion of tariff burden sharing. Finally, the 90-day window period for this round of tariff policy adjustments will inevitably lead some domestic enterprises to rush exports further. However, considering the current high inventory levels of ESS battery cells in the US, there are significant uncertainties regarding the scale and pace of subsequent rushed exports. 》Click to view details Driven by the positive expectations of tariff impacts on ESS battery demand, spot quotes for battery-grade lithium carbonate slightly increased on May 14, rising by 100 yuan/mt to a range of 63,600-65,800 yuan/mt, with an average price of 64,700 yuan/mt. 》Click to view SMM's spot quotes for new energy products From a fundamental perspective, lithium carbonate prices currently remain near the lows of recent years. Under the pressure of cost losses, upstream lithium chemical plants have demonstrated a strong sentiment to stand firm on quotes. Currently, there is only a certain level of transaction activity between traders and downstream enterprises. Despite the aforementioned favorable policy drivers and a slight destocking of lithium carbonate inventory after the Labour Day holiday, the cumulative inventory level of lithium carbonate remains high. Moreover, ore prices continue to fall to new lows, with cost support continuously weakening. Therefore, the overall price trend of lithium carbonate will continue to fluctuate at lows.

[Yahua Group: Termination of Lithium Concentrates Offtake Agreement with Core] Yahua Group announced that its wholly-owned subsidiary, Yahua International, and Lithium Development, a wholly-owned subsidiary of Core, signed a "Deed of Settlement, Termination and Release" to terminate the original "Offtake Agreement" for lithium concentrates and its supplementary agreement. The operation of the Finniss lithium mine project, owned by Core, has been suspended, and it is unable to supply lithium concentrates. The company has established a diversified channel layout combining self-controlled mines and externally purchased ore, building a stable lithium resource guarantee system. The termination of this agreement will not impact the company's normal production and operation, nor will it harm the interests of the company and all its shareholders.