The overseas secondary aluminum market remained under pressure this week as the continued pullback in LME aluminum gradually filtered through to Southeast Asian scrap and ADC12 prices. Most scrap grades in Malaysia and Thailand moved lower, although some premium-grade materials remained relatively resilient due to tight availability. Meanwhile, Southeast Asian ADC12 prices continued to soften amid sluggish automotive and die-casting demand. Rising energy costs in Thailand, however, are providing some support to producers’ cost bases, leaving the market caught between weak downstream demand and elevated production costs. Southeast Asia Scrap Aluminum Prices Fall, but Premium Grades Remain Resilient Southeast Asian aluminum scrap prices generally moved lower this week. In Malaysia, Talon averaged MYR 13,250/mt (approximately $3,280/mt) , down 3.64% week-on-week. Tense fell to $2,650/mt , down 4.50% WoW. In contrast, used beverage cans (UBC) edged higher to MYR 10,125/mt (approximately $2,507/mt) , up 0.75% WoW. In Thailand, Talon declined to THB 109,000/mt (approximately $3,335/mt) , down 1.36% WoW, while UBC fell to THB 82,000/mt (approximately $2,510/mt) , down 2.38% WoW. As LME aluminum continued to retreat from its recent highs, buyers lowered their target prices and became increasingly cautious about restocking. Some scrap grades that had previously resisted the decline began to catch up with the broader market, with Malaysian Tense recording the largest weekly decline among the assessed grades. However, the performance of Malaysian UBC highlights the continued divergence between different scrap categories. Premium-grade scrap remains relatively tight, particularly UBC and 6063 extrusion scrap, limiting suppliers’ willingness to make aggressive price concessions. As a result, the decline in LME aluminum is increasingly being transmitted to the scrap market, but premium-grade scrap continues to show greater price resilience than ordinary mixed scrap. Southeast Asia ADC12 Prices Edge Lower as Demand Remains Weak The Southeast Asian ADC12 market remained soft this week, with prices declining in both Malaysia and Thailand. Malaysia’s domestic ADC12 price fell to MYR 12.45/kg (approximately $3,082/mt) , down 0.40% WoW, while FOB Port Klang prices declined to $3,090/mt , down 0.48%. In Thailand, domestic ADC12 prices fell to THB 102.5/kg (approximately $3,137/mt) , down 0.97% WoW. FOB Laem Chabang prices slipped to around $3,070/mt , down 0.16%. According to SMM’s recent discussions with Thai producers, export offers are currently concentrated at around $3,050–3,090/mt . Some producers have lowered their offers following the decline in LME aluminum, although overall adjustments remain relatively cautious. Demand remains the primary source of pressure. Southeast Asia is still in the traditional seasonal lull, with automotive and die-casting orders recovering slowly. Downstream buyers continue to purchase largely on a hand-to-mouth basis, with little indication of aggressive restocking. At the same time, production costs remain elevated. Market participants in Thailand reported that natural gas prices have recently risen significantly, with some producers indicating increases of around 40–50% . Higher energy costs are increasing secondary aluminum production costs and limiting producers’ ability to aggressively cut ADC12 prices even as LME and some scrap prices decline. The ADC12 market therefore remains caught between downstream pressure for lower prices and production costs providing a floor . Low-Priced Alloy Ingot Supply Adds Pressure to Asian Market Another development attracting market attention is the increasing availability of competitively priced casting alloy ingots from Africa, Vietnam and other regions. According to SMM’s recent market discussions, some African-origin ADC12 or similar casting alloy ingots have been indicated at around $2,850/mt , significantly below mainstream Southeast Asian ADC12 offers of approximately $3,050–3,090/mt. Against the backdrop of falling LME aluminum prices and weak downstream demand, these lower-priced materials are influencing buyers’ price expectations and providing additional bargaining leverage when negotiating with Southeast Asian suppliers. However, price is not the only consideration. Feedback from market participants suggests that some low-priced imported alloy ingots have shown greater variation in chemical composition and inconsistent quality , limiting their suitability for customers with stricter production requirements. For automotive components and die-casting applications, where alloy consistency is particularly important, buyers continue to consider product quality, stable supply and long-term reliability alongside price. The Asian ADC12 market is therefore showing increasing price and quality segmentation , with lower-priced material pressuring market sentiment while higher-quality, specification-consistent ADC12 retains some premium. LME Aluminum Falls Further as Supply Risk Premium Unwinds LME aluminum continued to decline this week. From August 17 to August 20, LME cash aluminum fell from around $3,272/mt to $3,182/mt , a cumulative decline of approximately $90/mt . One factor behind the decline is the continued unwinding of the supply risk premium associated with disruptions in the Middle East. Emirates Global Aluminium’s Al Taweelah smelter continues to restart production. Around 18% of the smelter’s pots have resumed operations , while all three potlines have been re-energised. Production is expected to return to pre-disruption hot-metal levels in the first quarter of 2027. As the restart path becomes clearer, market concerns over a prolonged disruption to Gulf aluminum supply have eased. Alternative logistics routes have also allowed some material and raw-material flows to continue, while increased aluminum exports from China, Indonesia and other Asian suppliers are helping offset part of the disruption to Gulf supply. Meanwhile, signs of easing spot tightness have emerged. The LME cash-to-three-month spread has moved from backwardation toward a slight contango, suggesting that concerns over immediate physical availability have eased at the margin. More importantly, however, downstream demand has failed to keep pace with the earlier rally in aluminum prices . SMM’s recent discussions with market participants indicate that buyers generally did not chase prices higher during the previous rally. Once LME began to decline, purchasing targets were quickly revised downward. This helps explain a view increasingly expressed by market participants that prices have recently been “falling faster than they rise.” Supply Risks Ease, but the Market Has Not Shifted Into Oversupply Despite the recent decline in LME aluminum, the global primary aluminum market should not yet be interpreted as having shifted decisively from tightness into oversupply. Only around 18% of Al Taweelah’s pots have restarted, while a full recovery to pre-disruption production levels is not expected until the first quarter of 2027. Other overseas restart and new capacity projects are also progressing, but the pace of actual supply recovery has yet to accelerate significantly. Some projects continue to ramp up more slowly than previously expected. Inventories also remain supportive. LME aluminum inventories are currently around 247,000 mt , remaining at relatively low levels. The recent LME decline therefore appears to reflect a combination of the unwinding of extreme supply risk premiums, easing near-term spot tightness and renewed focus on weak demand , rather than a fundamental shift toward substantial global primary aluminum oversupply. Low inventories and the gradual pace of overseas supply recovery continue to provide downside support. Outlook SMM expects the overseas secondary aluminum market to remain soft and range-bound in the near term, with increasing divergence between different products and grades . For aluminum scrap, further weakness in LME prices could continue to pressure Tense, Talon and other conventional scrap grades. However, premium materials such as UBC and 6063 extrusion scrap remain relatively tight, which should allow them to maintain stronger price resilience. If LME declines faster than premium scrap prices, their price-to-LME ratios could remain elevated or even rise temporarily. For ADC12, weak downstream demand remains the key constraint. Buyers are becoming increasingly aggressive in negotiations as LME declines, but rising energy costs in Thailand and relatively firm premium-grade scrap prices are limiting producers’ room for substantial further reductions. Lower-priced alloy ingots from Africa, Russia and other origins will also require close attention. If offers around $2,850/mt become more widely available, they could further pressure Asian buyers’ price expectations. However, differences in quality and chemical consistency mean that their impact on mainstream high-quality ADC12 could remain uneven. For LME aluminum, further unwinding of the Middle East supply risk premium may continue to limit upside potential. Nevertheless, EGA’s recovery remains incomplete, other overseas supply has yet to accelerate significantly, and inventories remain low, leaving fundamental support on the downside. Overall, the market’s key question is increasingly shifting from “Will supply be disrupted?” to “Can real demand absorb supply as production gradually recovers?” Going forward, market participants should closely monitor LME price and inventory structures, the actual pace of EGA and other overseas restarts, Thai natural gas and production costs, Southeast Asian UBC and 6063 scrap availability, flows of lower-priced African and Russian alloy ingots, and the recovery of automotive and die-casting orders across Asia .

SMM, August 21: US-based critical minerals refiner Nth Cycle has been selected by the US Department of Energy to enter award negotiations for up to $100 million in funding to build a commercial-scale black mass refining facility, Project Shield, in the southeastern US one of the first of its kind domestically. The facility will refine up to 24,000 t/y of domestic black mass, the material recovered from shredded spent lithium-ion batteries, into high-purity nickel MHP and battery-grade lithium carbonate using Nth Cycle's proprietary OYSTER electroextraction system. The award addresses a structural gap in US recycling capacity: following the US Department of Commerce's recent one-year export ban on black mass, insufficient domestic refining has left China dominant in its processing. Nth Cycle already holds a ten-year offtake term sheet with Trafigura for 2,000 t of contained nickel and 1,500 t of lithium carbonate, adding to its existing Ohio operations. Project Shield is targeted for 2029, aided by a modular build model roughly 70% less capital-intensive than traditional refineries. SMM View: DOE backing for Nth Cycle reflects growing US urgency to build domestic lithium and nickel recycling capacity independent of Chinese midstream processing, with the black mass export ban tightening feedstock supply at home and locked-in offtake demand strengthening the case for battery recycling as a key pillar of western raw material security.

On August 2st, Sydney-listed Elevra Lithium has secured a price-floor supply agreement to deliver spodumene concentrate from its Québec project to Mangrove Lithium's planned conversion facility in Canada, as North American players move to build out domestic lithium processing capacity. Under the agreement, Elevra will supply 100% of the feedstock required for Mangrove's 20,000 tonne-per-year lithium carbonate-equivalent conversion plant. The deal includes a price floor set above Elevra's expected production cost, with no ceiling on the upside, though the contract value was not disclosed. The Mangrove facility remains subject to a final investment decision, with additional funding support expected from Export Development Canada and the Canada Growth Fund, according to Mangrove Chief Commercial and Strategy Officer Annie Liu. Liu noted that floor-price offtake structures are becoming increasingly standard across the hard-rock lithium supply chain, citing long asset development lead times and sustained demand for spodumene feedstock. A similar structure was adopted in February when Australia's PLS Group signed a floor-priced spodumene concentrate offtake agreement with a Chinese converter. SMM View: The Elevra-Mangrove agreement reflects growing use of price-floor mechanisms to underpin new spodumene supply contracts, providing upstream producers with cost-cover certainty against continued lithium price volatility while securing dedicated feedstock for new North American conversion capacity. As more western processing projects reach final investment decision, similar floor-price offtake structures may become a standard feature of non-China-aligned spodumene supply chains, with implications for how feedstock is contracted and priced globally.

【Nth Cycle to Go Public via SPAC Merger, Expanding U.S. Black Mass Refining】 U.S. critical minerals refiner Nth Cycle has entered into a definitive business combination agreement with Kensington Capital Acquisition Corp. VI, with the combined company expected to list on the New York Stock Exchange at an implied enterprise value of approximately $585 million. Nth Cycle’s OYSTER electrochemical refining platform processes black mass from end-of-life lithium-ion batteries and battery manufacturing scrap to recover critical materials including nickel and lithium. The transaction is expected to support the company’s expansion of domestic critical mineral and battery material refining capabilities in the U.S.

SMM Analysis: Recently, the London Metal Exchange (LME) copper market saw a sudden short squeeze. Copper prices shot up, nearing record highs, and the premium (Back) of LME spot prices against the 3M contract once widened to the highest level in nearly five years...

SMM expects the most-traded SHFE lead contract to mainly trade in the range of 15,500-16,200 yuan/mt, and the implementation of maintenance at primary lead enterprises in mid-to-late August is expected to drive prices to bottom out and rebound, but consumption will cap upside room. Overall, lead price performance in August is better than in July, and the willingness of overseas lead ingot inflows into China is improving MoM.

【US DOE to Provide $500 Million for Lithium, Cobalt and Battery Materials Projects, Nth Cycle to Receive $100 Million for Black Mass Processing】 The U.S. Department of Energy will provide a total of $500 million in grants to seven companies to support domestic lithium, cobalt and battery materials projects. Battery recycler Nth Cycle will receive $100 million to develop a facility for black mass processing, while Princeton NuEnergy will receive $50 million to reprocess cathode battery materials. The funding also covers lithium extraction, cobalt refining, electrolyte chemicals and silicon-based anode materials, as the U.S. seeks to strengthen its critical minerals and battery supply chains and build a domestic battery and black mass recycling ecosystem.

On August 13, 2026, the Ministry of Heavy Industries of India officially launched the technical bid evaluation for the "Sintered Rare Earth Permanent Magnet Manufacturing Promotion Plan" (REPM), with 20 bids vying for up to five licenses. On the surface, it appears to be a fierce "20-for-5" competition, but when examining the industry's fundamentals, the real protagonist of this story is not the 72.8 billion rupees (about $765 million) in subsidies, but the "three clocks" running simultaneously in India—the policy clock is already pointing to mass production in 2028, the commercialization clock of state-owned enterprise IREL points to 2029–2030, and the certification clock of downstream clients is measured in "years." The desynchronization of these three clocks is the most intuitive footnote to the fact that it is still too early for India's rare earth industry chain to develop.

In early to mid-August 2026, CAAM and the CPCA Passenger Car Association successively released relevant data on the auto market for July 2026. CAAM stated that in July, the auto market entered the traditional off-season, with foot traffic and orders naturally pulling back. This was compounded by factors including some demand being brought forward and released by the mid-year sales push, persistent nationwide high temperatures, and typhoons and flooding in certain regions affecting offline sales, resulting in a seasonal pullback MoM and a slight decline YoY. Among them, exports continued to maintain rapid growth, with monthly exports exceeding 1 million units for two consecutive months, and the share of NEV exports exceeding 50% for two consecutive months...... SMM compiled relevant data on the auto and battery markets for July 2026 for readers’ reference. Auto Market CAAM: Auto production and sales declined both MoM and YoY in July; the decline in January-July narrowed further versus H1 In July, auto production and sales totaled 2.573 million units and 2.584 million units, down 6.8% and 8% MoM, and down 0.7% and 0.3% YoY, respectively. From January to July, auto production and sales totaled 17.567 million units and 17.602 million units, both down 3.7% YoY, with the decline narrowing further versus H1. CAAM: NEV production and sales both rose over 20% YoY in July; from January to July, NEV new-vehicle sales reached 51.2% of total new-vehicle sales In July, NEV production and sales totaled 1.576 million units and 1.561 million units, up 26.8% and 23.7% YoY, respectively . NEV new-vehicle sales reached 60.4% of total new-vehicle sales. From January to July, NEV production and sales totaled 9.014 million units and 9.007 million units, up 9.5% and 9.6% YoY, respectively , and NEV new-vehicle sales reached 51.2% of total new-vehicle sales. CAAM: Auto exports exceeded 1 million units for two consecutive months; the share of NEV exports exceeded 50% for two consecutive months In July, auto exports were 1.043 million units, up 0.6% MoM and up 81.3% YoY . From January to July, auto exports were 6.14 million units, up 66.8% YoY. In July, NEV exports were 553,000 units, up 5.7% MoM and up 1.5x YoY ; traditional fuel vehicle exports were 490,000 units, down 4.6% MoM and up 40% YoY. From January to July, NEV exports were 2.909 million units, up 1.2x YoY; traditional fuel vehicle exports were 3.231 million units, up 36.2% YoY. Regarding the auto market in July, CAAM analyzed that in July, the auto market entered the traditional sales off-season, with foot traffic and orders naturally pulling back. Coupled with factors such as some demand being released early due to the mid-year sales push, persistent nationwide high temperatures, and typhoons and flood disasters in some regions affecting offline sales, the market showed a seasonal pullback on a MoM basis and edged down YoY. Exports continued to maintain rapid growth, with monthly exports exceeding 1 million units for two consecutive months, and the share of NEV exports exceeding 50% for two consecutive months; the share of NEVs in monthly new-car sales exceeded 60% for the first time, and the cumulative share exceeded 50% for the first time. On July 30, the Political Bureau of the CPC Central Committee convened a meeting to deploy economic work for H2, explicitly proposing to implement a more proactive fiscal policy and a moderately accommodative monetary policy, fully leverage the effectiveness of existing policies, and promptly plan and introduce pragmatic and effective incremental policy, while stepping up countercyclical adjustments. It called for effectively expanding domestic demand and fostering a fair and orderly market competition environment. The meeting made a series of important deployments, releasing multiple positive signals that will help stabilize confidence, boost consumption, and promote the steady operation of the industry. Meanwhile, the CPCA also released relevant data for the passenger car market in July. In July 2026, nationwide passenger car market retail sales were 1.461 million units, down 20.9% YoY and down 8.8% MoM; cumulative retail sales since the beginning of this year were 10.173 million units, down 20.3% YoY. In July 2026, China’s passenger car market showed an operating trend of “total volume remaining under pressure, weakening MoM, and an extremely polarized structure,” with the off-season downturn becoming more pronounced and the industry’s structural adjustment further deepening. For passenger NEVs, in July, passenger NEV market retail sales were 951,000 units, down 3.9% YoY and down 5.8% MoM; from January to July, passenger NEV market retail sales were 5.668 million units, down 12.5% YoY. In July, retail sales of conventional fuel passenger cars were 510,000 units, down 41% YoY and down 14.2% MoM; among them, regular hybrid car models were down only 4% YoY and down 5% MoM. In terms of NEV exports, in July, passenger NEV exports were 540,000 units, up 147.8% YoY and up 8.1% MoM . They accounted for 58.8% of passenger car exports, up 14 percentage points compared to the same period last year; among them, BEVs accounted for 59.5% of NEV exports (65.1% in the same period last year), and A00+A0-class BEVs, the core focus, accounted for 42.2% of BEV exports (36.6% in the same period last year). As the scale advantage of China’s NEVs becomes evident and market expansion needs grow, new energy brand products made in China are increasingly going global, with recognition outside China continuing to rise. Among them, narrow PHEVs accounted for 35.9% of new energy exports (32.4% in the same period last year), and range-extended vehicles accounted for 4.6% (2.5% in the same period last year). Although there have recently been some disruptions from external countries, exports of domestically branded narrow PHEVs to developing countries have grown rapidly, with a promising outlook. The CPCA stated that in July 2026, China’s passenger vehicle market showed an operating trend of “overall volume remaining under pressure, weakening MoM, and extremely polarized structure,” with the off-season downturn becoming more pronounced and the industry’s structural adjustment further deepening. The weakening auto market in July 2026 resulted from the combined resonance of multiple factors, including a rebound in oil prices, macro weakness, the seasonal off-season, earlier demand being pulled forward, and policy transitions. Geopolitical conflicts disrupted navigation through the Strait of Hormuz, driving international oil prices to drift higher; in 2026, China’s domestic gasoline prices were cumulatively raised by 1,575 yuan/mt, significantly increasing driving costs. Consumer demand for internal combustion engine passenger vehicles contracted sharply, while the impact on commercial vehicles was minimal. Meanwhile, July CPI and PPI pulled back MoM and PMI sentiment weakened; residents’ income and consumption expectations were relatively cautious, willingness to purchase big-ticket durables remained subdued, and spending on housing and travel continued to weaken, dragging down end-use demand in the auto market. In addition, the July off-season high temperatures suppressed offline store traffic, and June’s mid-year sales push pulled demand forward, causing terminal orders and foot traffic to pull back in tandem. Moreover, the new national safety standard for new energy was formally implemented, raising the industry’s technical threshold, and the short-term exit the market of low-end car models disrupted the market. However, the July Politburo meeting made clear stronger fiscal support and intensified policies to expand domestic demand and boost consumption, providing a floor for the auto market; the current downturn is a phased, structural fluctuation rather than a trend-level deterioration of the industry. Overall, the passenger vehicle market in July 2026 showed five salient characteristics: (1) Overall volume remained under pressure and structural divergence was amplified to the extreme; “deep cooling in internal combustion engine vehicles and strong leadership by new energy” became the core market theme, and oil price fluctuations dictated the pace of “ICE-to-NEV substitution”; (2) Internal combustion engine vehicles contracted across the board, with pure ICE models nearly stalling while hybrid models were relatively resilient, leading to continued optimization of the internal structure of ICE vehicles; (3) The penetration rate of new energy continued to hit new highs, with compliant products under the new national standard launched in concentrated iterative cycles on the supply side, and the industry shifted comprehensively from price involution to value competition; (4) Exports continued to play a stabilizing role, effectively steadying automakers’ wholesale and capacity and easing pressure from weak domestic retail; (5) Industry inventory continued to be reduced in a healthy manner, with producer and channel inventory declines widening in tandem, overall inventory risks fully released, operating pressure easing steadily, and overall resilience partially recovering. Power batteries From January to July, China’s cumulative production of power batteries and ESS batteries totaled 1,286.9 Gwh, up 54.9% YoY. In July, China’s combined production of power batteries and ESS batteries was 218.0 Gwh, up 5.8% MoM, up 62.9% YoY . From January to July, China’s cumulative production of power and ESS batteries totaled 1,286.9 GWh, up 54.9% YoY on a cumulative basis. From January to July, China’s cumulative exports of power and ESS batteries reached 216.6 GWh, up 43.9% YoY on a cumulative basis In July, China’s combined exports of power and ESS batteries totaled 35.2 GWh, down 2.7% MoM , up 51.7% YoY , accounting for 19.0% of monthly sales. Of this total, power battery exports were 24.0 GWh, accounting for 68.0% of total exports, down 6.0% MoM and up 62.1% YoY; ESS battery exports were 11.3 GWh, accounting for 32.0% of total exports, up 4.9% MoM and up 33.4% YoY. From January to July, China’s cumulative exports of power and ESS batteries reached 216.6 GWh, up 43.9% YoY on a cumulative basis , accounting for 18.6% of cumulative sales. Of this total, cumulative power battery exports were 146.7 GWh, accounting for 67.7% of total exports, up 52.1% YoY on a cumulative basis; cumulative ESS battery exports were 69.9 GWh, accounting for 32.3% of total exports, up 29.3% YoY on a cumulative basis. From January to July, China’s cumulative power battery installations totaled 410.2 GWh, up 15.4% YoY on a cumulative basis In July, China’s power battery installations were 74.6 GWh, down 2.5% MoM , up 33.5% YoY. Of this total, ternary battery installations were 11.1 GWh, accounting for 14.9% of total installations, down 12.1% MoM and up 1.8% YoY; LFP battery installations were 63.1 GWh, accounting for 84.6% of total installations, down 1.0% MoM and up 40.5% YoY. From January to July, China’s cumulative power battery installations totaled 410.2 GWh, up 15.4% YoY on a cumulative basis. Of this total, cumulative ternary battery installations were 74.5 GWh, accounting for 18.2% of total installations, up 12.1% YoY on a cumulative basis; cumulative LFP battery installations were 335.1 GWh, accounting for 81.7% of total installations, up 16.0% YoY on a cumulative basis. In July, Leap Motor Deliveries Surpassed 100,000; BYD’s Overseas Sales Hit Another Record High Among new automakers in July, Leap Motor continued to gain momentum, with deliveries reaching 101,267 units in July , up 102% YoY, surpassing the 100,000 mark for the first time on a monthly basis , becoming the first new automaker brand in China to achieve monthly deliveries exceeding 100,000 units, and ranking among the leaders across the entire new energy industry. The second-ranked NEV startup automaker was XPeng Group. In July, XPeng Group delivered a total of 38,027 vehicles, up about 4% YoY . As of July, XPeng Group’s cumulative global deliveries surpassed 1.2 million units. In terms of charging stations, as of July 31, XPeng charging covered 430 cities, with more than 3,800 cumulative self-operated charging stations, including over 3,300 self-operated ultra-fast charging stations, continuously providing users with a more convenient and efficient charging experience. NIO delivered a total of 35,934 vehicles in July, up 71.0% YoY. Of these, the NIO brand delivered 20,008 vehicles, up 57.9% YoY; the ONVO brand delivered 10,155 vehicles, up 69.9% YoY; and the firefly brand delivered 5,771 vehicles, up 143.9% YoY. In the first seven months of 2026, NIO delivered a total of 227,057 vehicles, a record high, up 68.0% YoY, with all three brands setting record highs in deliveries over the first seven months. The NIO brand delivered 139,496 vehicles, up 60.1% YoY; the ONVO brand delivered 52,618 vehicles, up 39.1% YoY; and the firefly brand delivered 34,943 vehicles, up 242.3% YoY. To date, NIO has delivered a cumulative total of 1,224,649 vehicles. Li Auto delivered 30,468 vehicles in July. As of July 31, 2026, Li Auto’s cumulative historical deliveries totaled 1,764,155 vehicles. Li Auto said that as of July 31, 2026, it had 490 retail centers nationwide, covering 159 cities; and 536 after-sales maintenance centers and authorized service centers, covering 219 cities. Li Auto had put into use 4,141 Li Auto supercharging stations nationwide, with 22,841 charging piles. As for Xiaomi Auto, its July deliveries again exceeded 30,000 units. To date, Xiaomi Auto has delivered more than 30,000 units for four consecutive months. Notably, since officially entering the automotive market in 2024, Xiaomi Auto has launched two car models, including the SU7 and YU7. As of month-end July, the two car models had delivered a cumulative total of over 700,000 units. As for EV leader BYD, its July sales reached 419,211 units, with exports of nearly 180,000 units, setting another record high. From January to July 2026, cumulative sales totaled 2,227,722 units, and cumulative NEV sales exceeded 17.3 million units. In July 2026, BYD exported 180,538 NEVs. In the same month, NEV production was 420,249 units, versus 317,892 units in the same period last year; cumulative production this year totaled 2,234,379 units, versus 2,454,925 units last year, down 8.98% on a cumulative YoY basis. Sales totaled 419,211 units, versus 344,296 in the same period last year; cumulative sales this year reached 2,227,722 units, versus 2,490,250 last year, down 10.54% YoY on a cumulative basis. Looking ahead to August, the CPCA expected the overall passenger car market in August 2026 to show an operating pattern of “weak recovery in total volume and sharp structural divergence.” With 21 production-and-sales working days compounded by the off-season of extreme heat, the end-use market’s recovery pace remained mild, and a mix of macro and industry factors jointly shaped the market landscape. Affected by disruptions to navigation through the Strait of Hormuz, international oil prices drifted higher in July, and China’s refined oil prices were raised by nearly 985 yuan/mt in total across two rounds, significantly lifting the costs of using and maintaining internal combustion engine vehicles and continuing to suppress users’ willingness to purchase them. Demand for traditional internal combustion engine vehicles continued to weaken, which also became a key external tailwind for new energy vehicles to strengthen against the trend, continuously expanding growth room for new energy car models in China and in markets outside China. Overall, the CPCA expected the auto market in August to be in a bottoming phase of rebuilding momentum and recovery. As various policies to stabilize consumption were gradually implemented, together with a gradual improvement in the base effect, the decline in the passenger car market was expected to narrow steadily, and the industry was set to formally enter a mature development stage of “value-driven growth and structural optimization,” building momentum and paving the way for the traditional September-October peak season.

DAILY PRICE UPDATE Daily Price Update — August 21, 2026 Indonesian nickel ore CIF average prices increased across all three grades, with the strongest gain recorded for 1.6% Ni ore. • 1.4% Ni: CIF average price stayed the same $53.3/wmt. • 1.5% Ni: CIF average price stayed the same $60.8/wmt, • 1.6% Ni: CIF average price stayed the same $65.8/wmt, • Premium: Market players verified that the premium remained stable compared with the first half of August, with no significant change in the prevailing premium level. =================================================================== Indonesia Latest Policy Update — August 21, 2026 Indonesia’s planned Mineral and Strategic Commodities Exchange remains the main recent policy development relevant to nickel. The government said the exchange is expected to cover nickel, coal and palm oil, with operations targeted for January 1, 2027, aiming to establish domestic reference prices for strategic commodities. • Nickel impact: The exchange could strengthen Indonesia’s influence over nickel price formation and domestic benchmarks, potentially giving Indonesian prices a greater role in the international market. • Latest development: State Secretary Minister Prasetyo Hadi said on August 17 that preparations are underway for the exchange, tentatively referred to as Icomex. Morowali, Central Sulawesi: August is generally a relatively favorable period, and the current forecast indicates minimal rainfall, so mining, hauling and port operations should remain largely normal. • Indonesia: ESDM has begun approving revised 2026 RKAB applications, with some previously suspended nickel miners allowed to resume operations. The additional nickel ore quota remains undisclosed, leaving the supply impact unclear. The revision is expected to focus on addressing smelter ore shortages rather than broadly increasing mining quotas. • Halmahera: Higher seasonal rainfall risk than Morowali. Halmahera has a humid climate even in August, with rainfall occurring on many days. However, the current weekly forecast indicates limited rainfall, so no major disruption is expected this week. • Therefore, for Indonesia, Halmahera is the region to watch for rain, rather than Morowali.