[Xiaomi Auto Unveils Patent Related to Solid-State Batteries] According to Tianyancha APP, Xiaomi Auto Technology Co., Ltd. recently had its patent titled "Solid-State Battery Composite Electrode, Preparation Method, and Solid-State Battery Including the Composite Electrode" published. The patent abstract on Tianyancha indicates that the disclosed solid-state battery composite electrode effectively shortens the transmission path of metal ions within thick electrodes, accelerates the transmission rate of metal ions between electrodes, and exhibits high electrode loading and C-rate performance. (Kechuangban Daily) [CICC: Domestic New Energy Vehicle Sales to Maintain Strong Growth in H2 2025] CICC pointed out that the Chinese new energy vehicle market has shown robust performance since 2025, with wholesale sales of new energy vehicles increasing by 46% YoY from January to April 2025. Looking ahead, CICC is optimistic that domestic new energy vehicle sales will maintain strong growth in H2 2025, driven by the resonance of domestic demand and exports. [Mercedes-Benz and Beijing Benz Recall Certain Imported and Domestically Produced Vehicles] Recently, Mercedes-Benz (China) Automobile Sales Co., Ltd. and Beijing Benz Automotive Co., Ltd. have filed recall plans with the State Administration for Market Regulation in accordance with the requirements of the "Regulations on the Recall of Defective Automobile Products" and the "Implementation Measures for the Regulations on the Recall of Defective Automobile Products." Recall No. S2025M0090V: Starting from June 13, 2025, certain domestically produced C-Class and GLC SUV vehicles manufactured between April 25, 2023, and August 17, 2023, will be recalled, totaling 252 units. Recall No. S2025M0094V: Starting from June 13, 2025, certain imported S-Class and EQE vehicles manufactured between February 8, 2023, and October 10, 2023, will be recalled, totaling 257 units. Some vehicles within the scope of this recall used incorrect fuse boxes during previous recall repairs, which may lead to malfunctions in associated systems, resulting in potential loss of power, affecting restraint systems, instrument displays, etc. Additionally, the risk of fire cannot be ruled out, posing safety hazards. Mercedes-Benz (China) Automobile Sales Co., Ltd. and Beijing Benz Automotive Co., Ltd. will, through authorized Mercedes-Benz dealers, conduct free inspections of the affected fuse boxes for vehicles within the recall scope and replace them if the part numbers are incorrect to eliminate safety hazards. (Finance News) [Eight Departments Seek Public Comments on the "Guidelines for the Outbound Transfer of Automobile Data Security (2025 Edition)"] Eight departments, including the Ministry of Industry and Information Technology, are seeking public comments on the "Guidelines for the Outbound Transfer of Automobile Data Security (2025 Edition)." Automobile data processors providing automobile data overseas shall declare a data outbound security assessment if any of the following circumstances apply: (1) providing important data overseas; (2) cumulatively providing personal information (excluding sensitive personal information) of over 1 million individuals overseas since January 1 of the current year; (3) cumulatively providing sensitive personal information of over 10,000 individuals overseas since January 1 of the current year; (4) operators of critical information infrastructure providing personal information overseas; (5) other circumstances specified by relevant state regulations that require a declaration of data outbound security assessment. (Cailian Press) [GAC Group Promises: Rebate Payments to Dealers Will Be Completed Within Two Months Starting Today] GAC Group issued a commitment announcement: As a crucial part of the automotive industry chain, the stable development of dealers is a key factor in ensuring user service and experience. GAC Group actively responded to the initiative of the China Automobile Dealers Association to promote the healthy development of the automotive industry. Alongside its five major vehicle brands—Hyptec, Trumpchi, Aion, Honda, and Toyota—GAC Group promises that starting today, it will ensure the completion of rebate payments to dealers within two months to drive the high-quality development of the automotive industry. (Cailian Press) [MIIT: National Lithium Battery Production Exceeded 473GWh in January-April, Up 68% YoY] The Ministry of Industry and Information Technology (MIIT) released data indicating that from January to April 2025, China's lithium-ion battery industry continued its growth momentum. According to information from enterprises under the lithium battery industry's standard announcement and calculations by industry associations, the total national lithium battery production from January to April exceeded 473GWh, up 68% YoY. In the battery segment, the production of energy storage lithium batteries exceeded 110GWh, and the battery installations for new energy vehicles were approximately 184GWh. The total export value of lithium batteries nationwide from January to April reached 155.4 billion yuan, up 25% YoY. In the first-stage materials segment, the production of cathode materials, anode materials, separators, and electrolytes from January to April was approximately 1.15 million mt, 760,000 mt, 8 billion m², and 470,000 mt, respectively, all showing YoY increases of over 40%. In the second-stage materials segment, the production of battery-grade lithium carbonate was 270,000 mt, up 60% YoY, while the production of battery-grade lithium hydroxide was 90,000 mt, down 14% YoY. The average prices of battery-grade lithium carbonate and lithium hydroxide (micro powder grade) from January to April were 74,000 yuan/mt and 76,000 yuan/mt, respectively. 》Click for details Related Reading: [SMM Analysis] Breakthrough Achieved in Portugal's Lithium Mine Project; Development of Europe's Largest Spodumene Deposit Accelerates Weekly Summary of the LFP Market in June [SMM Lithium Battery Market Analysis] [SMM Analysis] Behind the 60-Day Payment Commitment: Suppliers' Wry Smiles and Anticipations Cobalt Product Quotes "Plummeting"; Co3O4 Falls by 7,650 Yuan in a Single Week; Will It Stop Next Week? [Weekly Observation] [SMM Analysis] Rio Tinto Partners with Codelco to Enter the Lithium Triangle; $900 Million to Develop World-Class Salt Lake Project [SMM Analysis] Separator Prices Remain Stable [SMM Analysis] Raw Material Drag Causes Price Decline; Policy Window Period May Lead to Bottoming Out and Rebound Battery and Solid-State Battery Sectors Strengthen Again; Multiple Automakers Announce Latest Progress; Lopal Shares Surge with Nearly 6 Limit-Up Moves [Hot Stock] [SMM Analysis] Cathode Material Production Increased MoM in May; Weak Growth in Downstream End-Use Demand [SMM Analysis] Anode Material Production Increased in May Due to Rising Demand [SMM Analysis] Co3O4 Production Increased MoM in May; Industry Players Remain Cautious Cobalt Product Quotes Collectively "Fall"; Cobalt Chloride Smelters' Quotes Remain Firm; Will They Stay High in the Future? [Weekly Observations] [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - An Exploration of Three Methods: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part I) [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - An Exploration of Three Methods: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part II) [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - An Exploration of Three Methods: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part III) [SMM Analysis] New Breakthrough in Lithium Battery Technology: Can a Single Injection Extend Battery Life?

This week, the total inventory of construction steel continued to decline. Specifically, the total rebar inventory decreased by 1.82% WoW, while the total wire rod inventory increased by 0.68% WoW. On the supply side, the operating rates of both BF and EAF steel mills declined this week. Currently, due to reduced profitability, some steel mills in Shaanxi have halted production for maintenance, leading to a decrease in pig iron production. The production situation of EAF steel mills varied. One electric furnace plant in east China resumed production, while in the southwest region, due to electricity subsidies, market profitability improved, prompting some electric furnace plants to extend their operating hours.

[SMM Analysis: Significant Increase in Sodium-Ion Battery Cathode Output in May, Niche Markets Emerging] SMM June 5 News: In 2025, the sodium-ion battery market is characterized by notable technological breakthroughs, cost reductions, and accelerated large-scale applications. Collaborative development across all segments of the industry chain has taken shape, with a dual-driven pattern of policy and market forces basically established...

[CPCA: From May 1 to 25, nationwide passenger vehicle retail sales reached 1.358 million units, up 16% YoY] According to data from the China Passenger Car Association (CPCA), from May 1 to 25, nationwide passenger vehicle retail sales reached 1.358 million units, representing a 16% YoY increase compared to the same period in May last year and a 9% MoM increase. Cumulative retail sales for the year so far have reached 8.23 million units, up 9% YoY. From May 1 to 25, nationwide new energy passenger vehicle retail sales reached 726,000 units, up 31% YoY compared to the same period in May last year and an 11% MoM increase. The retail penetration rate of the nationwide new energy vehicle market was 53.5%. Cumulative retail sales for the year so far have reached 4.05 million units, up 35% YoY.

China urges the US to completely eliminate unilateral tariff hikes. SHFE tin prices continue to decline during the night session [SMM Tin Morning News]. (1) Cui Dongshu: From January to April this year, China accounted for 68% of the global new energy vehicle market share and 12% of the overseas new energy vehicle market share for domestic brands. (Bullish ★) (2) Ministry of Commerce: China urges the US to completely eliminate unilateral tariff hikes. (Bullish ★) (3) US Fed's Goolsbee: If tariffs are avoided through agreements or other means, it may return to a situation where interest rate cuts are possible. (4) Global tariffs - ① The US Court of International Trade has halted Trump's "Liberation Day" trade policy, and the Trump administration has filed a notice of appeal. ② Hassett: The tariff ruling will be overturned, and the ruling will not affect the current progress of trade agreements. ③ US trade advisor: The court ruling has not changed the course of events, and our side has a strong chance of winning. ④ Japanese Prime Minister Fumio Kishida had a 25-minute phone call with Trump. Kishida stated that if necessary, he might visit the US before the G7 Summit. ⑤ Indian officials: The US trade team will visit India from June 5 to 6. Trade negotiations are proceeding as planned, and the impact of the US court ruling on tariff decisions is being studied. (Neutral)

[CPCA: From May 1 to 25, nationwide passenger vehicle retail sales reached 1.358 million units, up 16% YoY] According to CPCA data, from May 1 to 25, nationwide passenger vehicle retail sales reached 1.358 million units, a 16% increase compared to the same period in May last year and a 9% increase MoM. The cumulative retail sales since the beginning of the year reached 8.23 million units, up 9% YoY. From May 1 to 25, nationwide new energy passenger vehicle retail sales reached 726,000 units, a 31% increase compared to the same period in May last year and an 11% increase MoM. The retail penetration rate of the nationwide new energy vehicle market was 53.5%. The cumulative retail sales since the beginning of the year reached 4.05 million units, up 35% YoY.

[CPCA: From May 1 to 25, 1.358 million passenger vehicles were sold in China's retail market, up 16% YoY] According to CPCA data, from May 1 to 25, 1.358 million passenger vehicles were sold in China's retail market, representing a 16% YoY increase compared to the same period in May last year and a 9% MoM increase. The cumulative retail sales since the beginning of the year reached 8.23 million units, up 9% YoY. From May 1 to 25, 726,000 new energy passenger vehicles were sold in China's retail market, up 31% YoY compared to the same period in May last year and an 11% MoM increase. The retail penetration rate of the national new energy vehicle market was 53.5%. The cumulative retail sales since the beginning of the year reached 4.05 million units, up 35% YoY.

In May this year, driven by multiple factors such as policy incentives, sales promotions by producers, and the release of consumer demand, China's passenger vehicle market continued to maintain a steady growth trajectory. According to the latest forecast data from the China Passenger Car Association (CPCA), the retail sales of narrowly-defined passenger vehicles in May are expected to reach approximately 1.85 million units, up 8.5% YoY and 5.4% MoM. Among them, the retail sales of passenger NEVs are expected to reach approximately 980,000 units, with a penetration rate maintained at around 52.9%. The auto market in May showed a "high in the first half, low in the second half" trend. Looking back at April this year, the boost from the "program of large-scale equipment upgrades and consumer goods trade-ins" policy, coupled with increased subsidies from producers, led to narrowly-defined passenger vehicle retail sales in China reaching 1.755 million units, up 14.5% YoY and down 9.4% MoM. Among them, the retail sales of passenger NEVs reached 905,000 units, up 33.9% YoY, with a penetration rate of 51.5%, basically flat compared to March. This data indicates that although the market pulled back somewhat in April, it still maintained a relatively high level overall. Entering May, the boosting effect of the "program of large-scale equipment upgrades and consumer goods trade-ins" policy continued to manifest. According to data from the Ministry of Commerce, as of May 11, the number of trade-in subsidy applications nationwide reached 3.225 million, including 1.035 million for vehicle scrappage and renewal and 2.19 million for trade-in renewal. Since the implementation of the policy in 2024, the cumulative number of subsidy applications has exceeded 10 million, providing strong support for the auto market. The CPCA pointed out that, in the face of wait-and-see sentiment brought about by the rapidly changing and complex international situation, China's auto market has maintained a steady and upward trend driven by the "program of large-scale equipment upgrades and consumer goods trade-ins" policy. At the same time, the intensification of local auto shows and sales promotions by producers has also injected new vitality into the market. It is reported that local auto shows were held across the country in May, and enterprises also actively implemented a series of terminal sales promotion policies, such as "fixed-price" and "0-interest" car purchase financing schemes, during the Golden Week. The CPCA's terminal survey results showed that terminal customer traffic surged significantly during the Labour Day holiday Golden Week, with a concentrated release of consumer demand. Of course, it is worth noting that as customer traffic naturally pulled back after the holiday, the overall heat of the auto market tended to level off, and the auto market in May is expected to show a "high in the first half, low in the second half" trend. Observing the weekly market trends in May based on CPCA data, distinct differentiation characteristics before and after the holiday can be found. In the first week of May, influenced by the Labour Day holiday, terminals focused mainly on order collection, with fewer actual vehicle deliveries. The daily average retail sales were 41,700 units, down 10.9% YoY but up 19.3% MoM. Entering the second week, concentrated post-holiday deliveries drove a significant rebound in sales, with daily average retail sales reaching 60,900 units, up 30.2% YoY and 44.2% MoM, and the market experiencing a short-term peak. In Week 3, the daily average retail sales of passenger vehicles are expected to reach 51,200 units, up 13.9% YoY and flat WoW, indicating a normal pullback after the holiday. In Week 4, the daily average retail sales are projected to be 57,100 units, up 18.7% YoY but down 13.4% WoW, with market enthusiasm experiencing a mild pullback. The last week of May has five working days, with daily average retail sales expected to be 86,400 units, down 6.2% YoY and 21.7% WoW. New Energy Vehicle Market Maintains Strong Momentum According to data from the China Passenger Car Association (CPCA), retail sales of passenger NEVs in May are expected to reach 980,000 units, with a penetration rate of 52.9%, basically flat MoM compared to April. This data indicates that NEVs have become the mainstream in the market, with consumers' acceptance of electrified and intelligent car models continuing to rise. The dual drivers of policy and product innovation are key contributors to this trend. The "trade-in" policy provides additional subsidies for NEV replacements, and combined with the launch of new models by producers, further stimulates market demand. Additionally, the improvement of charging infrastructure and advancements in battery technology have significantly reduced consumers' purchase concerns, creating favorable conditions for the widespread adoption of NEVs. Looking ahead to future market development trends, policy dividends are expected to continue to be released. 2025 is a crucial year for national policies aimed at boosting consumption, and it is anticipated that the "trade-in" and local car purchase subsidy policies will continue to drive growth in the automotive market in H2. The CPCA also pointed out that after the Chinese New Year, the penetration rate in March was relatively high due to short-term policy boosts. In April, numerous new products were launched, but there was a time lag between launch and actual delivery, leading to a slower growth rate in market penetration subsequently. However, with new products gradually starting to gain traction, the growth rate of NEV penetration is expected to gradually rebound. Of course, intensified market competition will also bring about profound changes in the industry landscape. Against the backdrop of price wars and rapid product iteration, some weaker brands may face elimination, and industry concentration will further increase. At the same time, cutting-edge technologies such as intelligent assisted driving will become new focal points of competition among automakers, driving the entire industry to higher levels of development. Overall, the Chinese passenger vehicle market in May continued to maintain steady growth under the dual impetus of policy incentives and producer promotions, with the NEV penetration rate remaining stable above 50%, indicating profound changes in the market structure. In the future, with the continuous strengthening of policies, ongoing technological advancements, and the upgrading of consumer demand, the Chinese automotive market will move towards a new stage of greater electrification and intelligence. For automakers, this represents both opportunities and challenges. They need to accelerate the pace of technological innovation and product iteration to cope with increasingly fierce market competition, seize the development opportunities in NEVs and intelligence, and occupy a favorable position in the tide of industrial transformation.

China Passenger Car Association (CPCA): From May 1 to 18, nationwide passenger vehicle retail sales increased 12% YoY and 18% MoM. The CPCA released data indicating that from May 1 to 18, nationwide passenger vehicle retail sales reached 932,000 units, up 12% YoY compared to the same period in May last year and up 18% MoM. Cumulative retail sales since the beginning of the year totaled 7.804 million units, up 8% YoY. During the same period (May 1-18), nationwide new energy passenger vehicle retail sales reached 484,000 units, up 32% YoY compared to the same period in May last year and up 15% MoM. The retail penetration rate of the nationwide new energy vehicle market was 52%. Cumulative retail sales since the beginning of the year totaled 3.808 million units, up 35% YoY.

[National Passenger Vehicle Market Retail Sales Up 12% YoY and 18% MoM from May 1-18] The China Passenger Car Association (CPCA) released data indicating that from May 1-18, nationwide retail sales of passenger vehicles reached 932,000 units, up 12% YoY compared to the same period in May last year and up 18% MoM. Cumulative retail sales since the beginning of the year totaled 7.804 million units, up 8% YoY. During the same period (May 1-18), nationwide retail sales of new energy passenger vehicles reached 484,000 units, up 32% YoY compared to the same period in May last year and up 15% MoM. The retail penetration rate of the national new energy vehicle market was 52%, with cumulative retail sales since the beginning of the year totaling 3.808 million units, up 35% YoY.