SMM News on May 14: Today, driven by positive policy developments, the main lithium carbonate futures contract fluctuated upward after opening, surging over 3% during the session. By the close of the daytime session, the main contract closed up 3% at 65,200 yuan/mt, up 2,640 yuan/mt from the low of 62,560 yuan/mt set during the session on May 12, representing a 4.22% increase. In terms of spot prices, according to SMM's spot quotes, the spot price of battery-grade lithium carbonate also rose slightly by 100 yuan/mt today, trading at 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 Regarding the reasons for the rise in lithium carbonate futures prices, SMM believes it is mainly related to positive policy news. On May 12, the Ministry of Commerce website released a joint statement on the China-US Geneva Economic and Trade Talks, announcing that the US's 24% reciprocal tariff on Chinese products would be suspended for the initial 90 days. According to the latest news today, this tariff adjustment has been temporarily implemented. 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, potentially prompting an anticipated rush in exports of Chinese ESS battery cells, thereby driving up the demand for lithium carbonate. Starting from May 14, the tariff on new energy end-use products exported from China to the US is as follows: SMM predicts that, given the installation rush demand for ESS storage mentioned in China's Document No. 136 regarding the "May 31" grid connection deadline, the ESS battery cells produced in May may not be able to meet the installation rush demand in time this month. Therefore, the market previously expected that the production volume of ESS battery cells in May might decrease by 5-10% MoM compared to April. However, influenced by the golden export window period brought about by the change in US tariffs, and considering that it takes approximately one month for transportation and customs clearance from China to the US, it is expected that the production schedule of ESS battery cells for top-tier enterprises will remain at a high level in May and June, and the growth rate of ESS battery cell production is expected to turn from negative to positive MoM. 》Click to view details Returning to the supply and demand dynamics of the lithium carbonate market, lithium carbonate prices are currently hovering near recent lows. Under the pressure of cost losses, upstream lithium chemical plants have shown a strong sentiment to stand firm on quotes. Currently, there is only a certain level of trading activity between traders and downstream enterprises. The positive expectations for an increase in end-use demand driven by the aforementioned policy developments may, to a certain extent, drive a rebound in lithium carbonate prices. However, it should also be noted that although lithium carbonate inventory levels have slightly decreased after the Labour Day holiday, the current cumulative inventory level of lithium carbonate remains high. Moreover, ore prices continue to hit new lows, and cost support is continuously weakening. Therefore, the overall price of lithium carbonate will continue to exhibit a fluctuating trend at lows. As the futures and spot prices of lithium carbonate rose together, the shares of energy metal companies, including Tengyuan Cobalt, Huayou Cobalt, YOUNGY, Zhongkuang Resources, Weiling Co., Ltd., and Tianqi Lithium, also "rose", with multiple stocks increasing by over 1%. Dazhong Mining also responded today on the investor interaction platform regarding the progress of the lithium mine tunnel in Hunan. The company stated that as of now, the lithium mine tunnel in Hunan has been completed, laying a certain foundation for the early commissioning of mining and beneficiation operations. According to the "Lithium Exploration Report of the Tongtianmiao Ore Block in the Jijiaoshan Mining Area, Linwu County, Hunan Province" reviewed and filed by the company for its resource reserves, the associated minerals of the Jijiaoshan lithium mine in Hunan include metals such as rubidium, niobium, tantalum, tin, and tungsten. Institutional Comments Xinhu Futures commented that there are no significant positive factors in the short-term fundamentals, making it difficult for lithium prices to reverse their trend. However, at the current price level, it is necessary to be cautious about the rising expectations of supply-side disruptions and the capital-driven nature of low valuations. Given the relatively high channel inventory levels across the upstream, midstream, and downstream sectors, this will also limit the rebound space for lithium prices. Yide Futures stated that, on the supply side, the CIF price of Australian ore has fallen to $687.5/mt, while the price of African ore has remained stable at $637/mt. Port lithium ore inventory has increased, and the planned production of lithium carbonate nationwide for May has increased MoM, with the latest weekly production data showing a significant increase. On the demand side, the planned production of cathode materials, including ternary materials and LFP, has increased MoM. Based on the current production schedule, the supply and demand fundamentals still maintain a surplus pattern. In terms of inventory, the latest weekly inventory has decreased by 464 mt. Specifically, the significant increase in smelter production has not yet been transferred downstream or to traders, leading to a noticeable increase in their inventory, while the inventory of downstream traders has decreased. In the short term, the combination of front-loaded consumption and collapsing costs has led to a significant pullback in lithium carbonate prices. From a long-term industry perspective, the market requires a more thorough exit of the resource side. SDIC Futures stated that the total market inventory has decreased by 500 mt to 132,000 mt, with downstream inventory decreasing by 3,000 mt to 42,000 mt and smelter inventory increasing by 3,800 mt to 55,000 mt. The intermediate links are actively destocking. In terms of inventory structure, there is a weak willingness for downstream restocking, while passive restocking has occurred upstream, reflecting differences in market sentiment. The latest quote for Australian ore is $700, with a decline of over 15% in the past month, basically reflecting a downward shift in the price center. The midstream production has recovered rapidly, with a 28% increase in production MoM in the first week after the holiday, and an improvement in supply and demand still needs to be awaited. The futures price of lithium carbonate is in a downward channel, and short positions are being maintained.

Today, driven by favorable policy developments, the main lithium carbonate futures contract fluctuated upward overall after the opening bell, surging over 3% at one point during the daytime session. By the close of the daytime session, the main lithium carbonate futures contract closed up 3% at 65,200 yuan/mt, up 2,640 yuan/mt from the low of 62,560 yuan/mt set during the session on May 12, representing a 4.22% increase. Regarding the reasons for the rise in lithium carbonate futures prices, SMM believes it is mainly related to favorable policy news. On May 12, the website of the Ministry of Commerce released a joint statement on the China-US Geneva Economic and Trade Talks, stating that the US's 24% reciprocal tariff imposed on Chinese products would be suspended for the initial 90-day period. According to the latest news today, this tariff adjustment has been temporarily implemented. SMM understands that, overall, as the reciprocal tariff adjustment includes exemptions for new energy vehicles (NEVs) and their parts, the change in reciprocal tariffs will have a greater impact on the export of energy storage system (ESS) batteries. This may drive an anticipated surge in exports of Chinese ESS battery cells, thereby boosting the demand for lithium carbonate.

UK-based junior mining company First Tin (LSE:1SN) has confirmed the widespread presence of various critical mineral resources, including gallium and indium, within its Auersberg and Gottesberg exploration license areas in Germany. Additionally, First Tin has compiled sampling results from exploration work conducted from 2024 to 2025, along with historical data from the former German Democratic Republic. The findings indicate that, in addition to tin, gallium, and indium, the company has also discovered significant quantities of other critical raw materials, such as lithium, cesium, and rubidium. The company stated that, given that the EU has classified gallium and lithium as critical raw materials, these discoveries will further enhance the strategic importance of the project within the EU. Within a three-kilometer radius, First Tin has mapped and sampled several tin-quartz veins (Greisen), revealing the potential presence of a large mineralized system that may contain tin with grades ranging from 0.2% to 0.6%, along with associated critical mineral by-products. Furthermore, the presence of silver and bismuth has also been identified in some of the tin mineralized zones. Bill Scotting, CEO of First Tin, commented, "Our company holds a series of exploration licenses in the 'Tin Triangle' region (which is adjacent to the known Tellerhauser and Gottesberg deposits). Preliminary exploration results indicate significant development potential within the areas covered by these licenses." "Moreover, the substantial potential of these areas in terms of other critical minerals holds particular significance for Europe's current efforts to establish a secure supply chain for critical minerals." In its 2025 fieldwork plan, the company expects to conduct further work to assess the value of these newly discovered mineral resources.

On April 25, Sinomine Resource Group released its Q1 2025 performance report. According to the announcement, the company achieved a total revenue of 1.536 billion yuan, up 36.37% YoY. Net profit attributable to shareholders of the publicly listed firm was 135 million yuan, down 47.38% YoY. Sinomine Resource Group stated that in Q1 2025, the company achieved sales of 8,964.43 mt of lithium chemical products, up 13% YoY. However, due to market fluctuations in the lithium battery and new energy sector, the selling price of lithium chemical products declined significantly YoY, leading to a decrease in the gross profit margin of the company's lithium battery and new energy business. Facing downward pressure in the industry, the company actively implemented various cost-reduction and efficiency-enhancement measures to mitigate the risks of market price fluctuations. In Q1 2025, the company's rare light metal (cesium, rubidium) business maintained a good growth momentum, generating a total operating revenue of 345 million yuan during the reporting period, up 94% YoY, and achieving a gross profit of 231 million yuan, up 92% YoY. Among them, the fine chemical business of cesium and rubidium salts achieved sales of 265 dmt of cesium salt products, up 78% YoY. As a leading enterprise in the global cesium and rubidium salt market, the company continues to consolidate its dominant position in the global cesium salt market by leveraging the resource advantages of the Tanco mine in Canada and the Bikita mine in Zimbabwe. Meanwhile, it should be noted that in Q1 2025, the company's copper smelting business at the Tsumeb smelter in Namibia incurred a net profit loss of 100.4 million yuan due to a significant decline in industry processing fees (TC/RC) caused by tight global copper concentrate supply. This had a phased impact on the company's performance during the reporting period. The company has formulated relevant cost-reduction and efficiency-enhancement measures to gradually reduce losses in the copper smelting business and will form new profit growth points as soon as possible by releasing the capacity of the germanium business. It strives to achieve a turnaround for the Tsumeb subsidiary in Namibia at the earliest opportunity. During an investor activity survey, the company mentioned that in 2024, its self-owned mines achieved sales of 39,477 mt of lithium chemicals, up 164% YoY. The company fully leveraged its resource advantages, adjusted the raw material supply structure, and increased the proportion of spodumene concentrates, thereby reducing the production cost of lithium chemicals. Despite significant fluctuations in the market price of lithium chemical products in 2024, the company effectively mitigated market risks and smoothly navigated the industry cycle through business strategies and cost-reduction measures such as significantly increasing the self-sufficiency rate of lithium ore, adjusting the raw material supply structure, expanding municipal power supply capacity, and constructing PV power plants. In the future, the company plans to invest in and construct a 30,000 mt/year lithium sulfate plant in Zimbabwe, which is expected to further reduce transportation costs and thus lower the production cost of lithium chemicals. Regarding the future development outlook of the lithium battery business, Sinomine Resource Group stated that in the lithium battery and new energy business, the company will maintain the comprehensive cost of lithium chemicals at a leading level in the industry. It aims to complete the layout of a 30,000 mt/year lithium sulfate production capacity in Africa by 2026. It is worth mentioning that on April 25, Sinomine Resource Group also issued a feasibility announcement regarding the company's engagement in commodity futures and options hedging business. The announcement mentioned that the company is primarily engaged in the development and utilization of new energy raw materials for lithium batteries, with its main products being lithium chemicals such as lithium hydroxide and lithium carbonate. In recent years, the selling prices of the company's lithium chemical products have been significantly influenced by market price fluctuations. To mitigate the operational risks posed by product price fluctuations, the company intends to utilize the hedging functions of financial instruments to conduct commodity futures and options hedging business on product risk exposures related to its production and operation activities, effectively reducing the risks associated with market price fluctuations of products and ensuring the stable and sustainable development of its main business. The significant price fluctuations of lithium carbonate and lithium hydroxide are also reflected in their spot prices. According to SMM spot quotes, taking battery-grade lithium hydroxide as an example, its price dropped from a high of 560,000 yuan/mt in November 2022 to 67,360 yuan/mt on May 6, representing a decline of 87.97%. For battery-grade lithium carbonate, the price fell from a high of 567,500 yuan/mt in 2022 to 66,650 yuan/mt on May 7, marking a decline of 88.26%. 》Click to view SMM spot quotes for new energy products The combined amount of margins and premiums for Sinomine Resource Group and its subsidiaries to engage in commodity futures and options hedging business shall not exceed 200 million yuan. The aforementioned limit can be utilized on a rolling basis within the validity period. The varieties of commodity futures and options hedging business are limited to those directly related to the company's production and operation, specifically lithium chemical futures and options. The company stated that engaging in commodity futures and options hedging business aims to hedge against risks such as product price fluctuations, thereby achieving stable operation, which is necessary. The company has established clear regulations on the limits, varieties, and specific implementation of the hedging business, and the targeted risk control measures adopted are feasible. By conducting commodity futures and options hedging business, the company can achieve asset preservation for the purpose of risk hedging, enhance the financial stability of the company, and meet the requirements for stable operation. Therefore, the company's engagement in commodity futures and options hedging business is both necessary and feasible.

》【Live】Exploring the Transformation of the Global Battery Market, Current Status and Trends of the Low-Altitude Economy Industry, Investment Opportunities in Thailand 》【Live】Opportunities and Challenges in the Global ESS Market, Interpretation of China's Low-Carbon Hydrogen Industry Policies, Outlook for Solid-State Batteries 》【Live】Current Status and Challenges of the Global Lithium Battery Raw Material Supply Chain, LFP Market Forecast, Opportunities and Challenges in Mineral Investment 》【Live】Global Cobalt Market Dynamics, A Decade Review and Outlook of the New Energy Market, Interpretation of the New Mineral Resources Law 【Expert: Impact of Auto Tariffs on Chinese Automakers Relatively Limited】 According to data from the China Passenger Car Association (CPCA), although China is the world's largest automobile producer and exporter, the number of cars directly exported to the US has significantly declined due to US trade policies. In 2024, China exported only 116,000 cars to the US, accounting for just 1.81% of China's total car exports. Dongshu Cui, Secretary General of the CPCA, stated that the proportion of Chinese cars exported to the US is minimal, especially for domestic brands, which will not be affected by the US tariff hike. "The impact of the 25% auto tariff did not exceed expectations," noted Qing Chen, an analyst at BOCOM International. Although the tariff on Chinese cars exported to the US increased by 25%, the overall impact is relatively limited. Prior to this tariff, the US tariff on Chinese NEVs was already 122.5%, and 47.5% for internal combustion engine vehicles. After the new tariffs took effect, the additional tariffs on EVs and internal combustion engine vehicles rose to 145% and 70%, respectively. Under hefty tariffs, most Chinese domestic brands had already announced their withdrawal from the US market. He believes that Chinese automakers will accelerate localization and supply chain regionalization in countries along the "Belt and Road," Southeast Asia, and Europe. 【Hyundai Plans to Suspend Some EV Production Lines Again】 Hyundai plans to suspend some production lines again due to slowing overseas demand for EVs and the impact of US import tariffs. The company will halt operations at Line 12 of Plant 1 in the Ulsan factory from April 24 to 30, which is responsible for producing the Ioniq 5 and Kona EVs. This is the second time Hyundai has temporarily suspended EV production this year, following a five-day shutdown in February due to slowing global EV demand. The latest suspension reflects a significant decline in global orders for EVs, particularly from major export markets such as Europe, Canada, and the US. 【Sinomine Resource Group: Tariff Policy Changes Have Not Significantly Impacted Company Operations】 Sinomine Resource Group stated on an interactive platform that its overseas revenue mainly comes from subsidiaries such as Bikita in Zimbabwe, Tanco in Canada, and SSF Ltd in the UK. The company's cesium, rubidium, and lithium chemicals businesses have a strong market reputation, with downstream clients including several domestic and international publicly listed firms and top-tier enterprises. Tariff policy changes have not significantly impacted the company's operations. 【Hainan Mining: Transfer of Mining Rights for Bougouni Lithium Project Completed】 Hainan Mining (601969.SH) announced that its subsidiary, Kodal Mining UK, signed a Memorandum of Understanding with the Malian government regarding the transfer of mining rights for the Bougouni lithium project. Recently, the transfer was approved, and the certificate was registered under Le Mines de Lithium de Bougouni SA, with an initial validity period of 10 years. The company will proceed with government equity participation and project commissioning. 【Fangyuan Co., Ltd.: Termination of Battery-Grade Lithium Carbonate Production and Comprehensive Utilisation of Waste LFP Battery Project】 Fangyuan Co., Ltd. (688148.SH) announced that due to changes in the market environment and the company's business development strategy, it has decided to terminate the investment of up to 3 billion yuan in the "Battery-Grade Lithium Carbonate Production and Comprehensive Utilisation of Waste LFP Battery Project." The project was originally planned to be constructed in two phases, with the first phase including an annual production of 30,000 mt of battery-grade lithium carbonate and 46,000 mt of iron phosphate precursor, and the second phase including an annual production of 40,000 mt of LFP cathode material. The company has already invested 97 million yuan in the project and has returned the project land. The company will proceed with the deregistration of Fangyuan Lithium and other follow-up matters. This decision aims to optimize resource allocation, reduce operational risks, and improve operational efficiency, and will not adversely affect the company's business development. 【EVE: 2024 Net Profit Up 0.63% YoY, Plans to Distribute 5 Yuan per 10 Shares】 EVE (300014.SZ) announced its 2024 annual report, with revenue of 48.615 billion yuan, down 0.35% YoY, and net profit attributable to shareholders of 4.076 billion yuan, up 0.63% YoY. The company plans to distribute a cash dividend of 5 yuan per 10 shares (tax included). Note: Q3 2024 net profit was 1.051 billion yuan, and Q4 2024 net profit was 887 million yuan, down 15.64% QoQ. Related Readings: 【SMM Analysis】Weekly Review of the Lithium Carbonate Market: Prices Remain Stable, Buyers and Sellers in Stalemate 【SMM Analysis】Lithium Hydroxide Weekly Market Review, 4.14-4.18 【SMM Analysis】Ternary Cathode Material Prices Slightly Pulled Back This Week 【SMM Analysis】Ternary Cathode Precursor Prices Slightly Corrected This Week 【SMM Analysis】Dry Separator Prices Expected to Bottom Out 【SMM Analysis】Anode Material Prices Remained Stable This Week 【SMM Analysis】Weekly Update on the LFP Material Market 【SMM Analysis】ESS Battery Cell Price Trends, 4.11-4.17 【SMM Analysis】Dry Separator Prices Showed an Upward Trend This Week 【SMM Analysis】Power Battery Cell Prices Remained Stable with Slight Fluctuations 【SMM Analysis】Lithium Mine Weekly Market Review, 4.14-4.18 【SMM Analysis】Graphitisation Tolling Services Prices Remained Stagnant This Week 【SMM Analysis】Recent Electrolyte Prices, 4.14-4.17 【SMM Analysis】Petroleum Coke Prices Held Steady, Needle Coke Prices Slightly Declined This Week 【SMM Analysis】A Review of Waste Battery for Cascade Utilisation Price Trends This Week, 4.14-4.17 【SMM Analysis】Spot Prices of Refined Cobalt Rose 【SMM Analysis】Spot Prices of Cobalt Intermediate Products Remained Stable 【SMM Analysis】Spot Prices of Cobalt Sulphate Remained Temporarily Stable 【SMM Analysis】Cobalt Chloride Market Showed a Stable Trend This Week 【SMM Analysis】Co3O4 Market Prices Showed Relative Stability This Week

Hosted by Shanghai Metals Market (SMM), CLNB 2025 (10th) New Energy Industry Expo will be held from April 16 to 18, 2025 at Suzhou International Expo Center . During the exhibition, 1 main forum and 11 sub-forums will be held, with government leaders, academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering, domestic and overseas scientists, foreign guests from dozens of countries, and leading entrepreneurs from various industries attending the event! Witness the gathering of industry leaders, explore core technologies, listen to experts' insights, interpret market trends, and gather in Suzhou to focus on key issues, inviting you to jointly analyze industry development. This exhibition covers 6 major exhibition areas , with 1,300+ domestic and overseas exhibiting and participating companies showcasing the entire industry chain of batteries, including power batteries, consumer batteries, ESS, raw materials, materials, equipment, battery recycling, as well as NEVs, power tools, electric drives, and the low-altitude economy in the power exhibition area, providing you with a one-stop exhibition experience. Click to fill out the registration form and register immediately to discuss the future development of the new energy industry with industry elites. We look forward to your arrival and joining SMM in opening this feast of the new energy industry. At this New Energy Industry Expo, Sinomine Resource Group Co., Ltd. will make a grand appearance, discussing industry cooperation, sharing development opportunities, and jointly painting a beautiful blueprint for the new energy industry with peers. Sinomine Resource Group Co., Ltd. booth number: G03 cordially invites you to visit the CLNB 2025 New Energy Industry Expo About • Sinomine Resource Group Sinomine Resource Group Co., Ltd., established in 1999, is a Chinese A-share listed company primarily engaged in the development and utilization of raw materials for lithium battery new energy; the development and utilization of rare light metal (cesium, rubidium) resources; the development of copper metal resources; and the development of gallium, germanium, and zinc resources. The company is a highly competitive integrated leading enterprise in the processing of new energy raw material resources in China, a major supplier of battery-grade lithium fluoride, and an important producer and supplier of battery-grade lithium hydroxide and battery-grade lithium carbonate. The company is a leading enterprise in the fine chemical industry of cesium and rubidium salts globally, a significant producer and supplier of cesium formate, and holds an absolute market share. The company is a resource-based global mining group with over 100 mining rights in Canada, Zimbabwe, and Zambia, involving cesium, lithium, tantalum, beryllium, gold, copper, iron, and rare earth minerals. 【CLNB 2025—Hot Registration】 CLNB 2025 (10th) New Energy Industry Expo April 16 to 18, 2025 Suzhou International Expo Center

On the evening of June 30, Tibet Mining released the "Announcement on the Progress of the Comprehensive Green Development and Utilization of the 10,000 mt Battery-Grade Lithium Carbonate Project at Tibet Zabuye Salt Lake."

Tibet Mining: Production Line for 10,000 Tons of Battery-grade Lithium Carbonate in Zabuye, Tibet Launched Tibet Mining recently issued an important announcement, disclosing the latest progress of the comprehensive green development and utilization project of the Zabuye Salt Lake in Tibet. The production line for 10,000 tons of battery-grade lithium carbonate in this project officially entered the trial production stage on June 30th. Meanwhile, the construction of supporting energy facilities is also being accelerated in an orderly manner. The core process of this project adopts the "membrane separation + evaporative crystallization" technology, aiming to efficiently recover valuable resources such as lithium and potassium in the Zabuye Salt Lake. According to the project design plan, it is expected to produce 9,600 tons of battery-grade lithium carbonate, 2,400 tons of industrial-grade lithium carbonate annually, and also produce 156,000 tons of potassium chloride and 200 tons of rubidium-cesium mixed salt as by-products, injecting new vitality into the green economic development in Tibet.

[Tibet Mining: Launch of 10,000-ton Battery-grade Lithium Carbonate Production Line in Zhabuye, Tibet] Tibet Mining recently released an important announcement, disclosing the latest progress of the comprehensive green development and utilization project of the Zhabuye Salt Lake in Tibet. The 10,000-ton battery-grade lithium carbonate production line in this project has officially entered the trial production phase on June 30. Meanwhile, the construction of supporting energy facilities is also being accelerated in an orderly manner. The core technology of this project adopts the "membrane separation + evaporation crystallization" method, aiming to efficiently recover valuable resources such as lithium and potassium in the Zhabuye Salt Lake. According to the project's design plan, it is expected to produce 9,600 tons of battery-grade lithium carbonate and 2,400 tons of industrial-grade lithium carbonate annually. At the same time, it will also produce 156,000 tons of potassium chloride and 200 tons of rubidium-cesium mixed salt as by-products, injecting new vitality into the green economic development in Tibet.

Tibet Mining: Trial Production of the 10,000-ton Battery-grade Lithium Carbonate Project for Comprehensive Green Development and Utilization of Zhabuye Salt Lake in Tibet Begins" - On June 30, Tibet Mining announced that the 10,000-ton battery-grade lithium carbonate project for comprehensive green development and utilization of Zhabuye Salt Lake in Tibet began trial production on June 30, and the construction of supporting energy facilities is also being vigorously promoted. The project adopts the "membrane separation + evaporative crystallization" process to efficiently recover lithium, potassium, and other resources from Zhabuye Salt Lake, with a designed annual output of 9,600 tons of battery-grade lithium carbonate, 2,400 tons of industrial-grade lithium carbonate, 156,000 tons of by-product potassium chloride, and 200 tons of mixed rubidium-cesium salt.