On April 1, 2026, the launch ceremony for the Zhongke Liquid Sunshine (Shawan) Green Hydrogen Coupled Zero‑Carbon Liquid Sunshine Methanol Circular Economy Industrial Project was held in Shawan, Tacheng Prefecture, Xinjiang. As a flagship project of China’s 15th Five-Year Plan strategic hydrogen energy layout, the project has officially entered the construction phase. Led by the research team of Academician Li Can of the Chinese Academy of Sciences (CAS) and developed by Zhongke Liquid Sunshine (Shawan) Hydrogen Energy Technology Co., Ltd . , the project will build an integrated zero‑carbon circular economy system centered on wind‑solar power, green hydrogen, and methanol. It comprises three core modules: an annual output of 3.6 million tonnes of methanol, 13.5 GW of photovoltaic hydrogen production capacity, and an annual output of approximately one million tonnes of coal. Compared with conventional coal chemical industry, this model cuts coal consumption by two-thirds while enabling efficient utilization of green electricity and green hydrogen. The project adopts domestically developed oil‑methanol co‑refining technology to produce polyester fiber, supporting high‑value resource utilization in conjunction with Xinjiang’s textile industry. Multiple enterprises have participated in the joint construction, including China National Chemical Engineering Third Construction Co., Ltd. In alignment with national policies such as the West Hydrogen East Delivery pipeline initiative, the project will help upgrade Xinjiang’s wind and solar energy resources. It is expected to create nearly 2,000 jobs, serve as a model for Xinjiang’s green energy transition, and support national energy security and low‑carbon development.

Since the beginning of 2026, the lithium battery materials industry has seen a new wave of structural positioning led by chemical giants. In March, Dazhong Mining announced that it planned to sign a tripartite agreement with the Meishan High-tech Zone Administrative Committee and Wanhua Chemical (Sichuan) Battery Materials Technology Co., Ltd. to jointly invest in and build a “200,000 mt/year lithium chemicals project,” with Phase I expected to be planned at 30,000 mt.

This week (March 13, 2026–March 19, 2026), multiple enterprises in the solid-state battery sector were active: Dali Times commenced construction of a 2 GWh specialized semi-solid-state battery base; EVE’s Longquan Phase III/IV all-solid-state batteries rolled off the line in Chengdu; Chery released its 600 Wh/kg Rhino all-solid-state battery technology。

[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Fluctuated Downward After Opening in the Night Session, and Spot Transactions Were Relatively Sluggish]

[Phosphorus Chemical Industry: Wengfu's Wet-Process 85 Phosphoric Acid Rose by 700 yuan/mt Within Half a Month, Pushing Iron Phosphate Production Costs Higher Under Pressure] On March 16, 2026, SMM reported that phosphorus giant Wengfu Group raised the ex-factory price of wet-process 85 phosphoric acid by 200 yuan/mt yesterday. Wengfu implemented a "price adjustment on every 5th" mechanism (the 5th, 15th, and 25th of each month). This marked the second price adjustment in March, bringing the cumulative increase to 700 yuan/mt (it had already increased by 500 yuan/mt on March 5). The continued increases in phosphoric acid prices brought significant cost pressure to new energy enterprises, while the production costs of iron phosphate via the iron-process and sodium-process routes rose by several hundred yuan accordingly.

Recently, Donghua Engineering Technology Co., Ltd. (Donghua Technology) released a major contract announcement. On March 5, 2026, in Hefei, Anhui province, the company formally signed an EPC general contracting agreement for Phase I, Stage 1 Green Ammonia Works of the 800,000-mt/year wind and solar power hydrogen-ammonia integration project with Renewable Green Hydrogen Energy (Inner Mongolia) Co., Ltd. (“Renewable Green Hydrogen”), supporting the scaled implementation of Inner Mongolia’s green hydrogen and green ammonia industry. I. Core Project Overview The project signed this time is the first-phase works of the 800,000-mt/year wind and solar power hydrogen-ammonia integration project. The plant’s design capacity is **200,000 mt/year of green ammonia**. The scope of construction covers a complete supporting system including newly built process production units, storage and transportation units, auxiliary facilities, utilities, and front-of-plant living facilities. Relying on wind and solar power renewable energy to produce hydrogen and synthesize green ammonia, it will build a clean, low-carbon chemical industry chain. II. Key Contract Information Contract Value : 2.026 billion yuan (provisional estimate) Schedule Arrangement : The contract duration is approximately 27 months, and the planned mechanical completion date is expected to be June 18, 2028 Scope of Contracting : Donghua Technology is fully responsible for the full-process EPC work, including pre-project consulting, design, procurement, construction and installation, testing and detection, cooperation for completion acceptance, operation support, construction-period insurance, handover, and start-up commissioning guidance. III. Project Entity and Performance Assurance The entity responsible for the project’s construction and operation is Renewable Green Hydrogen Energy (Inner Mongolia) Co., Ltd. Its controlling shareholder is Yijingxing Green Hydrogen Energy Investment (Hainan) Co., Ltd., and the ultimate controlling party is Renewable Green Hydrogen Energy Technology Asia Co., Ltd. Currently, the project has completed the investment project filing with the Inner Mongolia Autonomous Region, and the partners have sufficient performance capability, laying a solid foundation for the smooth advancement of the project.

[Phosphorus Chemical Industry: Tinci Materials Plans to Invest 2.1 Billion Yuan to Build the Yichang New Energy Industrial Park, With 1 Million mt of Iron Source and 300,000 mt of Iron Phosphate] On March 9, 2026, Tinci Materials (002709) announced that, to strengthen its strategic layout in lithium-ion battery materials, the company plans to build a new energy materials industrial park in Yichang, Hubei, through its wholly owned subsidiary Tinci Materials (Hubei) Co., Ltd. The project is expected to have an annual capacity of 1 million mt of iron source and 300,000 mt of iron phosphate, with total investment expected not to exceed 2.1 billion yuan.

Geopolitical conflict in the Middle East led to a blockade of the Strait of Hormuz, cutting off the global sulphur supply chain (China’s import dependence exceeds 50%, with the Middle East accounting for 56%). Sulphur prices surged to 4,395 yuan/mt, directly pushing up phosphate fertiliser costs. Rigid demand from spring ploughing provided support, but China’s policies to ensure supply and stabilise prices curbed phosphate fertiliser gains。

Capacity-wise, according to incomplete statistics, the domestic alkaline electrolyzer market remains at 43.77GW, and the PEM electrolyzer market stays at 2.7GW, with no new capacity added. The "water electrolysis hydrogen production system - oxygen purification unit" produced by Skyreach Hydrogen Technology (Beijing) Co., Ltd. has been successfully delivered to a leading large-scale polysilicon producer in China. Updates on electrolyzer projects: Jinfeng Green Energy Chemical (Xing'an League) Co., Ltd.: The Yujinfeng Xing'an League green hydrogen to green methanol (Phase III) project has been filed, with the construction site located in Xing'an League Economic and Technological Development Zone, Ulanhot City, Xing'an League. Total investment: 2.3 billion yuan, including 460 million yuan of own funds and 1.84 billion yuan of bank loans applied for. The planned construction period is from May 2026 to May 2028. The project will mainly construct biomass gasification, methanol synthesis distillation, and other main production facilities along with supporting public auxiliary works, producing 725,000 tons of green methanol annually. Guohua Investment Guohua (Cangzhou) Integrated Energy Co., Ltd.: The Alashan Large Wind and Solar Base Electrolysis Water Hydrogen Production and Ammonia Synthesis System Integration and Engineering Demonstration Project Cangzhou Green Ammonia Phase II Electrolysis Water Hydrogen Production System Preliminary Design Service has issued a public tender. According to the announcement, the first phase of the Cangzhou green hydrogen and green ammonia electrolysis water hydrogen production and ammonia synthesis facility has already been constructed within the reserved area of the green ammonia plant. Shaanxi Hydrogen Luyuan Technology Co., Ltd.: The shortlisted candidates for the hydrogen power supply equipment and its auxiliary devices procurement (0021GBT rectifier power supply) of the Yulin Zero-Carbon Industrial Park Hydrogen (Hydrogen Production) Demonstration Project have been announced. According to the announcement, the first candidate is Beijing Leidong Zhi Chuang Technology Co., Ltd., with a bid price of 1.3668 million yuan; the second candidate is Zhuzhou CRRC Times Electric Co., Ltd., with a bid price of 1.4661 million yuan; the third candidate is Shenzhen Hopewind Technology Co., Ltd., with a bid price of 1.48 million yuan. North Engineering Design & Research Institute Co., Ltd. : A quotation request has been issued for the process equipment of the hydrogen production unit of the electrolysis water hydrogen production device (including electrolyzers, gas-liquid separation skids, purification skids, centrifugal pumps, canned motor pumps, alkali mixing tanks, demineralized water tanks, and auxiliary facilities). Jiangxi Xinlianxin Chemical Industry Co., Ltd.: The annual 100kt green methanol demonstration project has passed the filing. It is understood that the total investment of the project is 100.96 million yuan, and the construction scale and content do not involve additional land use, partially relying on Jiangxi Xinlianxin Chemical Co., Ltd. Upon project completion, the facility is expected to achieve an annual production of 100kt of green methanol. Construction is scheduled to commence in April 2026 and conclude in April 2027. Jinda Hongjing (Shache) Hydrogen Energy Technology Co., Ltd.: The company issued postponement announcements for the full-process tracking audit service and project supervision service of the Jinda Hongjing Shache County Integrated PV Hydrogen Production Project. The revised bid opening date for both is March 10, 2026. The project involves the construction of a new 250kt/year green methanol production facility, including water electrolysis for hydrogen production, biomass gasification units, and methanol synthesis units, along with storage systems and supporting utilities and auxiliary facilities. The annual output is set at 250kt of green methanol, with by-products including 30kt/year of steam and 179.2 million standard cubic meters/year of oxygen. Ningxia Wangwa Coal Industry Co., Ltd.: The winning bid result was announced for the hydrogen production equipment procurement of the Guyuan Pengyang 2×660MW Unit Project. The winning bidders are Suzhou Xipeiyou Hydrogen Energy Technology Co., Ltd. (bid price: 2.062 million yuan), Wuxi Weifu High-Technology Group Co., Ltd. (bid price: 2.2 million yuan), and Shanghai Hydrogen Sharp Technology Co., Ltd. (bid price: 2.3736 million yuan). The tender was divided into one section, specifically for a 10Nm³/h proton exchange membrane hydrogen production unit. Xinjiang Huadian Weihuliang New Energy Co., Ltd.: The company announced the transaction results for the UPS and EPS of the alkaline water electrolysis hydrogen production system for the Xinjiang Huadian Urumqi Point-to-Point Hydrogen Refueling Station, as well as the results for the hydrogen production system distribution cabinet. The suppliers are Harbin Jiuzhou Group Co., Ltd. and Tengzhou Taiyuan Power Equipment Manufacturing Co., Ltd., respectively. Junrui Green Hydrogen Energy (Chahar Right Rear Banner) Co., Ltd.: A competitive consultation announcement was released for the full-process management of the Chahar Right Rear Banner 14,400 t/year Hydrogen Production Project. According to the announcement, the procurement budget for the full-process management is 1.69% (bidders must not quote a rate higher than 1.69%, or the bid will be deemed invalid). Policy Review 1. The Ningxia Hui Autonomous Region Development and Reform Commission published the "Ningxia 2026 First Batch of Project List Recommended to Private Capital." One key project in the hydrogen energy sector is the Integrated Hydrogen Storage, Transportation, and Utilization Zero-Carbon Energy Demonstration Base, located in the Lingzhou Chemical Industry Park in Lingwu City. The project aims to establish a demonstration model covering the entire green hydrogen production chain, including wind and solar power generation, hydrogen production, storage, and transportation. It will be equipped with corresponding facilities, pipelines, and transport fleets to provide logistics services to surrounding chemical enterprises and offer a feasible solution for replacing gray hydrogen with green hydrogen in the Ningdong coal chemical industry. Additionally, the project plans to construct hydrogen refueling stations to support bus operations and distributed fuel cell power generation projects. The total investment in the project amounts to 2.8 billion yuan. 2. The Jilin Provincial Energy Bureau released the "Implementation Plan for the Development and Construction of Green Electricity Direct Connection Projects in Jilin Province (Trial)" (Draft for Comments). The document indicates that new load projects can carry out green electricity direct connections, with priority support for hydrogen-based green energy (green hydrogen, green hydrogen to green ammonia, green hydrogen to green methanol, green hydrogen to sustainable aviation fuel, etc.), steel metallurgy, computing (data) centers, automotive manufacturing, and other industries. Electricity consumption projects that have not been registered with grid enterprises (including expansion parts of existing loads), electricity consumption projects that have been registered but whose supporting grid projects have not yet started construction, and existing projects agreed upon through consultation with grid enterprises are all considered new loads. In principle, new loads (including expansion parts of existing loads) and existing loads should not have direct electrical connections. 3. The European Commission approved a 4 billion euro special fund for electrolyzers, providing a 30% subsidy on equipment costs for projects with an annual capacity of ≥500 MW, and setting a 2030 target for electrolyzer efficiency in green hydrogen projects at ≥60% (LHV basis). Corporate Developments Plug Power : Faces a securities class action lawsuit in the US District Court for the Northern District of New York, accused of making misleading disclosures to investors regarding the progress of a US Department of Energy (DOE) loan guarantee of $1.66 billion (approximately 12 billion yuan), exaggerating the likelihood of obtaining the loan and the project construction capabilities. In November 2025, Plug announced the suspension of the loan-related project, jeopardizing the loan and the plan for six hydrogen plants, leading to consecutive declines in its stock price. Transition Industries : Signed a long-term natural gas supply agreement with Mexico's CFEnergía, securing a daily supply of 160 million cubic feet of US gas for the Pacifico Mexinol ultra-low carbon methanol project in Mexico. This contract marks the final key commercial milestone for the project, which has a total investment of $3.3 billion and is expected to commence operation by the end of 2029 to early 2030, producing 2.15 million mt of ultra-low carbon methanol annually, making it the largest facility of its kind globally. Power2X : Dutch hydrogen-based synthetic fuel developer Power2X acquired green hydrogen enterprise HyCC, with the transaction valuation undisclosed. The acquisition adds five green hydrogen projects in the Netherlands and Germany, with a total developable scale of 1 GW, aiding the company in advancing its 250,000 mt per year green hydrogen-based SAF project in Rotterdam, marking its transition from project development to execution. Robert Bosch GmbH: Conducted workforce optimization in China, with the first round involving nearly 200 employees at the Wuxi plant's internal combustion engine and hydrogen fuel cell projects. This is an economic layoff, with the company offering N+4 compensation, exceeding the statutory standard. China Huadian Corporation Ltd. : Party Secretary and Chairman Jiang Yi held talks in Baotou with Chen Zhichang, Member of the Standing Committee of the Inner Mongolia Autonomous Regional Party Committee and Secretary of the Baotou Municipal Party Committee, and Meng Qingwei, Deputy Secretary of the Baotou Municipal Party Committee and Mayor, where both sides exchanged views on further deepening central-local cooperation. Hebei Province Baoding High-Tech Environment Technology Co., Ltd.: announced the winning bid result for the Baoding High-Tech Environment Technology Co., Ltd. Hydrogen-Powered Sanitation Vehicle Procurement Project. The winning bidder was Changsha Zoomlion Environment Industry Co., Ltd., with a bid price of 37.685 million yuan. Inner Mongolia Ebert Coal Technology Co., Ltd.: The hydrogen refueling, hydrogen swapping, charging and swapping integrated station at Plot 02-02C1 in the Airport Logistics Park was approved for construction by the Yijinhuoluo Banner Energy Bureau. The bid inviter is Inner Mongolia Ebert Coal Technology Co., Ltd., and the construction funds are self-raised. It is understood that this project is an integrated station for hydrogen refueling, hydrogen swapping, and charging. The hydrogen refueling station is classified as a Level III station with a hydrogen refueling capacity of 500 kg/d. The main facilities of the hydrogen refueling station include 1 unloading column, 2 units of 45 MPa hydrogen compressors, 1 unit of 90 MPa hydrogen compressor, 1 set of 45 MPa hydrogen storage cylinder bundle, 1 set of 90 MPa hydrogen storage cylinder bundle, 1 unit of HB5/H70 hydrogen refueling integrated machine, 3 units of compressor chiller units, 1 unit of hydrogen refueling machine chiller unit, 1 set of nitrogen cylinder bundle, 1 unit of nitrogen cabinet, 2 units of sequential control cabinets, 1 unit of heat exchanger, etc. The facilities for the hydrogen swapping and battery swapping station include 1 set of integrated hydrogen swapping and battery swapping skid, etc. Patent Applications 1. Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) disclosed patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory test lifespan reaching 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing a Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprints/Technical Specifications 1. The team of Liu Qingju from Yunnan University constructed a superwetting Pt/NF@CF graded heterojunction electrocatalyst for low-energy consumption and high-efficiency hydrogen production. 2. Teams from Hunan Normal University and Central South University (AM) revealed the effects of compressive strain and oxygen vacancies on iridium oxide in proton exchange membrane water electrolyzers. 3. Relevant research teams from the School of Electrical Engineering, Xi'an Jiaotong University, and the State Key Laboratory of Electrical Insulation and Electrical Materials successfully developed a Ru/Ti3C2Ox@NF bifunctional seawater electrolysis electrocatalyst. 4. The group standard "Technical Specification for Wind-Solar-Storage Green Electricity Coupled Electrolysis Hydrogen Production" (Number T/CIEP 0272—2025) was released and implemented by the China Industrial Environmental Protection Promotion Association. Zhongneng Dayou Energy Technology Co., Ltd. successfully developed a 100 kW-level PEM electrolyzer hydrogen production multi-field coupling test equipment. 5. GKN Powder Metallurgy announced the development of a new generation of high-performance, high-porosity, high-purity porous transport layer (HP-PTL) for proton exchange membrane (PEM) electrolysis.

[SMM Analysis] New National Standard for Secondary Lead and Inclusion in Delivery on the Agenda, Market to Shift to "Primary + Secondary Dual-Track Pricing" SMM February 27: Starting March 1, 2026, the "Secondary Lead Ingot GB/T 21181-2025" (hereinafter referred to as the "new national standard") will replace the "Secondary Lead and Lead Alloy Ingot GB/T 21181-2017" (hereinafter referred to as the "old national standard") and officially come into effect.