Since InterBattery in March, Korea’s battery industry has been expanding its focus from high-nickel EV batteries to ESS, LFP, AI data centers, and safety. Battery-related conferences held in April also highlighted AI-enabled R&D, LFP process innovation, application-specific next-generation batteries, and stronger safety and reliability. This suggests that the definition of premium is expanding from energy density to system reliability, operational stability, and supply chain transparency.

SMM April 29: The most-traded SHFE lead 2606 contract opened at 16,710 yuan/mt. Prices dipped slightly at the opening, touching a low of 16,700 yuan/mt. Subsequently, supported by tightening regional secondary lead supply, futures strengthened in a fluctuating manner, reaching a high of 16,795 yuan/mt. Near the close, gains narrowed and pulled back slightly, ultimately closing at 16,745 yuan/mt, up 50 yuan/mt or 0.3%, recording a small bullish candlestick. Consumption side, with the Labour Day holiday approaching, battery makers had largely completed their periodic restocking last week, and downstream just-in-time procurement follow-through was insufficient, with overall demand remaining weak. Supply side, constrained by tight raw material inventory, some secondary lead smelters cut production or halted operations, and spot cargo continued to tighten. Ex-China lead ingot destocking continued, while China's primary lead social inventory also pulled back slightly. Currently, the weak supply-demand dynamics in the lead market were prominent, and lead prices may maintain a fluctuating trend in the short term. Data source statement: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

Futures: Overnight, LME lead opened at $1,961.5/mt, briefly touched a high of $1,963/mt at the beginning of the session, then fluctuated lower during the Asian session. Entering the European session, prices once rebounded but subsequently came under pressure again, hitting a low of $1,949.5/mt before recovering slightly. Prices weakened again near the close, ultimately settling at $1,951.5/mt, down 0.61%. Overnight, the most-traded SHFE lead 2606 contract opened higher with a gap at 16,735 yuan/mt. At the beginning of the session, SHFE lead prices moved sideways within 16,720-16,755 yuan/mt, touching a high of 16,755 yuan/mt. Prices then came under pressure and pulled back, showing an overall fluctuate downward trend, hitting a low of 16,700 yuan/mt. A slight rebound occurred near the close, ultimately settling at 16,705 yuan/mt, up 10 yuan/mt or 0.06%. Open interest stood at 65,269 lots, an increase of 1,770 lots from the previous trading day. On the macro front: The US prohibited its individuals or entities from paying Strait of Hormuz transit fees to Iran. Sources: Iran was expected to submit a revised peace proposal soon. Trump: Iran wanted the US to reopen the Strait of Hormuz as soon as possible. Iranian military: did not believe the war was over. The UAE announced its withdrawal from OPEC and the "OPEC+" mechanism effective May 1. The Political Bureau of the CPC Central Committee held a meeting to analyze the current economic situation and economic work. China will implement zero tariffs on all African countries with diplomatic relations starting May 1, 2026. MIIT: the next step will be to carry out the "AI + Software" special action, and promote computing power layout and edge computing construction in an orderly manner. Spot fundamentals: Yesterday, SHFE lead continued to consolidate. Suppliers made shipments following the market, but warrant quotations in Jiangsu, Zhejiang, Shanghai remained scarce. Suppliers mainly offered cargoes self-picked up from production site of primary lead smelters, with premiums adjusted lower from the previous day. Mainstream origins were quoted at premiums of 0-30 yuan/mt against SMM #1 lead average price, ex-works. Secondary lead side, supply in east China remained tight with significant regional price differences. Secondary refined lead was quoted at discounts of 60 yuan/mt to premiums of 50 yuan/mt against SMM #1 lead average price, ex-works. Downstream enterprises maintained just-in-time procurement, and as the holiday approached, a few enterprises had already entered holiday mode. Spot order market transactions were moderate and scattered. Inventory: As of April 28, LME lead inventory decreased by 500 mt to 269,200 mt. As of April 27, SMM lead ingot social inventory saw slight destocking. Lead price forecast for today: Consumption side, with the Labour Day holiday approaching and battery makers' earlier restocking demand having been met on a phased basis, downstream enterprises showed weak follow-through on just-in-time procurement, with overall consumption performance remaining subdued. Supply side, constrained by tight raw material inventory, some secondary lead smelters implemented production cuts and shutdowns, with regional secondary lead spot cargo continuing to tighten; ex-China, lead ingot destocking continued, while China's primary lead ingot social inventory also showed a slight destocking trend. The current lead market exhibited a weak supply-demand pattern on both sides, and lead prices were expected to maintain a fluctuating trend in the short term.

Chinese battery maker Sunwoda unveiled its next-generation LFP battery, “Xingchi Supercharge 2.0,” during its Technology Day event. The key highlight of Xingchi 2.0 is its peak charging capability of up to 15C. Based on a 98.8 kWh battery, it can theoretically accept up to 1,482 kW of power. The showcased battery pack, built with 264 prismatic cells, operates under an 844.8V high-voltage system and can handle currents of up to 1,800A. It can charge from 5% to 75% in just 5 minutes and 30 seconds, with an average charging rate of 6.7C.

[Secondary Lead Market Dynamics] Lead prices rose significantly. Downstream battery producers showed poor acceptance of high-priced supplies, and secondary refined lead offered at a premium of 25 yuan/mt against the SMM #1 lead average price delivered to plant was difficult to sell. Most downstream enterprises indicated that they were not short of supplies at present, with low purchase willingness.

Korea’s battery industry is expanding beyond EVs into ESS and other applications. As a result, competition is shifting from product performance toward broader supply chain capabilities. InterBattery 2026 highlighted this transition.

Leveraging its comprehensive material portfolio and technological advantages, Ronbay Technology had become a key support for the solid-state battery industry chain. The company's high-nickel and ultra-high-nickel all-solid-state cathodes had achieved shipments at the 10-mt level, with products covering leading battery makers and OEMs in and outside China. Client-side evaluations showed they could meet the requirements of 400 Wh/kg battery cells.

The US tariff reset is increasingly reshaping the ex-China battery market as a supply-chain design issue, not just a cost issue. With EV growth slowing and volatility rising, ESS—driven by project-based infrastructure demand—can provide a utilization and cash-flow buffer. As a result, “localization × ESS” execution and product-mix flexibility (including LFP) are becoming more central to competitiveness.

Ahead of Q2, the tensions across China’s NEV supply chain had already become increasingly visible in February and March. On the one hand, battery output remained resilient, supported by OEM volume targets and the new-model cycle;

Downstream battery producers have successively entered the holiday period, with low purchase intentions; coupled with low lead prices, most secondary lead smelters are also gradually suspending production. Due to expectations that environmental protection-related controls in Anhui will be lifted next week, local operating enterprises indicated that production is expected to resume.