Zhong Ke San Huan released its 2025 annual report. During the reporting period, in the face of a complex and ever-changing external environment and increasingly intense industry competition, the company proactively adopted effective measures such as cost reduction and efficiency improvement, achieving leapfrog growth in operating performance. Full-year operating revenue was 6.641 billion yuan, and net profit attributable to shareholders of the parent company was 91.3186 million yuan, up 660.50% YoY

From January to February, the value added of industrial enterprises above the designated size in Baotou increased by 5.3% YoY. Among the three major categories, two rose and one declined. The value added of the mining industry increased by 20.2% YoY, manufacturing rose by 4.5%, and the production and supply of electricity, heat, gas, and water fell by 1.4%. Nearly 60% of industries recorded positive growth. Among 34 major industry categories, 19 maintained growth in value added, representing a growth breadth of 56%. Among them, the value added of the raw chemical materials and chemical products manufacturing industry increased by 97.4%, boosting the growth of value added of industrial enterprises above the designated size by 6.1 percentage points.

China Northern Rare Earth Held an Analysis Meeting on Operating Activities for February 2026. Liu Peixun, Member of the Standing Committee of the Party Committee and Deputy General Manager of Baogang (Group) Company, and Party Secretary and Chairman of China Northern Rare Earth; Qu Yedong, Deputy Party Secretary and General Manager of China Northern Rare Earth; as well as members of the leadership team of China Northern Rare Earth and heads of various departments, subsidiaries, and branches attended the meeting.

The Meeting of the Leading Group for the Construction of Baotou Municipal Party Committee’s “Two Rare Earth Bases” Was Held. Chen Zhichang, Secretary of the Municipal Party Committee, presided over the meeting. Meng Qingwei, Deputy Secretary of the Municipal Party Committee and Mayor, and Zhou Qiang, Deputy Secretary of the Municipal Party Committee and Secretary of the Political and Legal Affairs Commission, attended. The meeting heard a report on the work in 2025 and the work arrangements for 2026, and reviewed documents including the R&D directions in key fields for the 15th Five-Year Plan.

China Northern Rare Earth (600111) consecutively issued two investment announcements, simultaneously advancing two major projects—10kt of rare earth metal alloys and 10kt of cerium-containing NdFeB magnetic materials—through a model featuring one controlling stake, one equity participation, and upstream-downstream coordination, so as to accelerate the development of the “two rare earth bases” and the upgrading of the entire industry chain. Both of the above investment proposals were unanimously approved by the company’s board of directors, and China Northern Rare Earth’s total investment in the two projects amounted to approximately 228 million yuan.

On March 12, Liu Leiyun, Party Secretary and Chairman of China Rare Earth Group, held a working meeting at the headquarters with Yuan Xu, Party Secretary and Executive Director of China National Nuclear Uranium Co., Ltd., and his delegation.

In the latter part of this month, Lithium Argentina recently released its Q4 and full-year 2025 results and outlined its subsequent expansion plans. The company holds a 44.8% stake in the Cauchari-Olaroz project The company’s flagship Cauchari-Olaroz project currently has an annual capacity of 40,000 mt and plans to expand by 45,000 mt/year In Q4 2025, it produced about 9,700 mt of lithium carbonate; full-year 2025 production was 34,100 mt, including 359 mt of lithium chloride, equivalent to LCE, produced and sold to Ganfeng Lithium in H1 2025 to support the startup of Ganfeng Lithium’s Mariana project. 2025 production reached the upper end of guidance of 30,000-35,000 mt, up 34% YoY from 2024; In Q4 2025, cost of sales was $66 million, and the cash operating cost of lithium carbonate was $5,618/mt. The decline in operating costs benefited from structural optimization and improved operating efficiency, and the related cost reduction effects are sustainable. In Q4 2025, revenue was $92 million, and the average realized selling price of lithium carbonate was about $9,049/mt. Affected by the sharp rise in market prices since year-end 2025, the average realized selling price of lithium carbonate in Q1 2026 is expected to be about $17,000/mt. For 2026 guidance, lithium carbonate production guidance is 35,000-40,000 mt. With ongoing optimization and lean operations, 2026 production is expected to rise steadily, supporting the project’s long-term operating performance. Regarding the PPG project and the Cauchari-Olaroz expansion: For the Cauchari-Olaroz Stage 2 expansion: the Cauchari-Olaroz project is advancing its expansion plan and proposes to add 45,000 mt/year of lithium carbonate capacity. Measured and indicated lithium resources were raised by 42% to 28.1 million mt LCE, with an average lithium grade of 562 mg/L. Leveraging the better-than-expected operating performance of the Cauchari-Olaroz project, construction of the 5,000 mt/year DLE plant will continue, with the first units to be deployed at Ganfeng Lithium’s nearby Mariana project for technology integration and operational validation. The Stage 2 expansion plan incorporating DLE process technology is expected to be completed by mid-2026. The application for the Large Investment Incentive Regime (RIGI) and the environmental protection permit for the Stage 2 project were both submitted in December 2025. PPG project: integrated development will be advanced in three phases, targeting total capacity of 150,000 mt/year LCE PPG is expected to have annual capacity of 25,000 mt when it comes online in 2029, then increase to 50,000 mt in 2031, 100,000 mt in 2034, and reach designed capacity of 150,000 mt/year in 2038. A detailed preliminary study was completed in December 2025. Based on an assumed lithium carbonate price of $18,000/mt, the project’s after-tax net present value (8% discount rate) was 8.1 billion, and the internal rate of return (IRR) was 33%. The Phase 1 environmental protection permit was obtained in November 2025, and the RIGI application was submitted in February 2026. The integration of the new joint venture company for the PPG project has been largely completed, and closing is expected in Q2 2026. Ganfeng Lithium and Lithium Argentina are discussing financing plans with potential clients and strategic partners, while simultaneously advancing offtake and minority equity cooperation. The company is considering applying for a secondary listing on the Australian Securities Exchange (ASX) or the Hong Kong Exchange (HKEX), while retaining its NYSE listing and broadening access to investors in the Asia-Pacific region. Source: Lithium Argentina official website, compiled by SMM

According to SMM data, total aluminum production outside China in March 2026 edged up 0.2% YoY, while daily average production outside China fell 2.7% MoM, mainly due to extensive production cuts and suspensions at aluminum plants in Mozambique and the Middle East during March. Looking ahead to April, although aluminum plants in the US and Iceland are expected to resume production, the resumption of production at a Spanish aluminum plant continues to advance, and operating capacity at new projects in Indonesia and Angola continues to ramp up, given the large-scale production cuts and suspensions at aluminum plants in the Middle East and Mozambique in March and the further emergence of their impact, aluminum production outside China is expecte

SMM News, March 31， In Q1 2026, amid macro tailwinds, expectations of a supply gap, and successive geopolitical conflicts in the Middle East, aluminum prices repeatedly hit new highs. The quarterly average SMM A00 aluminum price reached 24,028 yuan/mt, up 17.5% YoY; the quarterly average closing price of the LME aluminum 3M contract at 15:00 Beijing time reached $3,196/mt, up 21.8% YoY. High prices suppressed downstream consumption: At the end of 2025, SMM expected China’s primary aluminum consumption growth in 2026 to be 2.0%; as of February, that growth rate had fallen to 1.1%. As a result, the proportion of liquid aluminum in the aluminum industry declined significantly, and aluminum social inventory hit a nearly three-year high. As of March 31, the inflection point in China’s aluminum social inventory was still unclear, while the absolute inventory level had already entered the upper range of SMM’s previous forecast of 1.35-1.4 million mt. However, affected by geopolitical conflicts in the Middle East, aluminum supply and demand were both weak, fundamental risks increased, and prices saw wild swings. Under the impact of high prices, aluminum ingot inventory may continue to build further. According to SMM, as of the end of March, some aluminum ingots in certain regions were still backlogged at rail platforms and outside warehouses. High prices also accelerated supply growth: As of the end of Q1, average profits in China’s aluminum industry exceeded 8,000 yuan/mt. Stimulated by high profits, China’s aluminum supply growth is expected to exceed expectations. At the end of 2025, SMM expected China’s aluminum supply growth in 2026 to reach 1.7%; as of the end of Q1 2026, SMM expected that growth rate had risen to 1.9%. Outside China, supply growth was also boosted by high prices: 1) A smelter in Spain had originally planned to resume full production by 2026, and according to foreign media reports in March, it had already resumed to 90% of operating load; 2) In October 2025, an Icelandic smelter cut production on one line due to equipment failure. It had originally planned to resume production in September-October 2026, but has now moved the plan forward to start by the end of April; 3) At the end of 2025, expectations were that Indonesia’s operating aluminum capacity would reach 2 million mt by the end of 2026; that expectation has now been raised to 2.2-2.5 million mt. Q2 Outlook: At present, one of the decisive factors for global aluminum fundamentals and price trends is the geopolitical situation in the Middle East. SMM analysis showed that outside China, aluminum capacity that had already cut production or faced substantial production reduction risk exceeded 3 million mt. If subsequent production cuts from this portion of capacity are confirmed, outside China aluminum supply is expected to maintain negative YoY growth for an extended period, and global aluminum fundamentals are expected to face a large gap, with the gap outside China far exceeding that in China. In this case, aluminum prices in and outside China are expected to rise sharply again, with overseas prices expected to outperform domestic prices. China’s net aluminum imports are expected to decline, while exports from downstream aluminum plants are expected to increase. However, if actual production cuts come in below expectations, while consumption sees a marked reduction due to factors such as energy and inflation, the upward move in aluminum prices may face insufficient momentum. At present, geopolitical conflicts in the Middle East are disrupting the global aluminum supply-demand pattern, and SMM will continue to follow related developments.

March production was broadly in line with expectations, increasing by 63,700 mt from February on a MoM basis to a record high.