SMM News on August 17: Metals market: As of the midday close, base metals in the domestic market rose across the board. SHFE copper rose 1.76%, and SHFE aluminum rose 0.58%. SHFE lead rose 0.41%. SHFE zinc rose 0.99%. SHFE tin rose 0.85%. SHFE nickel rose 1%. In addition, the most-traded cast aluminum futures contract rose 0.69%, and the most-traded alumina contract rose 0.33%. The most-traded lithium carbonate contract fell 1.18%. The most-traded silicon metal contract was flat at 8,665 yuan/mt. The most-traded polysilicon futures contract rose 0.94%. Most ferrous metals rose. Iron ore fell 0.77%, rebar fell 0.1%, and hot-rolled coil rose 0.46%. Stainless steel rose 0.42%. For coking coal and coke: the most-traded coking coal contract rose 0.66%, and the most-traded coke contract rose 0.58%. Overseas base metals: as of 11:42, LME metals rose across the board. LME copper rose 1.36%, LME aluminum rose 0.68%, and LME lead rose 0.42%. LME zinc rose 0.58%. LME tin rose 0.43%. LME nickel rose 0.62%. Precious metals: as of 11:42, COMEX gold rose 0.28%, and COMEX silver rose 1.02%. Domestic precious metals: SHFE gold rose 0.89%, and the most-traded SHFE silver contract rose 1.92%. In addition, as of the midday close, the most-traded platinum futures contract rose 2.64%, and the most-traded palladium futures contract rose 2.05%. As of the midday close, the most-traded European shipping container futures contract rose 8.59% to 1,725.5 points. As of 11:42 on August 17, midday moves of some futures: Spot and Fundamentals Silver: Cooling rate-hike expectations provided support, but liquidity-risk disruptions capped gains, with silver prices consolidating at highs. Wait-and-see sentiment was strong in the spot market, and transactions leaned toward low premiums... Macro Front China: PBOC: Based on the needs of primary dealers for open market operations, the 7-day reverse repo operation size on August 17, 2026 was zero. Meanwhile, an overnight reverse repo operation of 565.5 billion yuan was conducted. (Jinshi Data APP) [China Made Major Progress in Key Technologies for Rare Earth Detection] It was learned today that China recently made major progress in key technologies for rare earth detection. For a long time, accurately determining rare earth impurity content in high-purity rare earths has faced the challenge of matrix interference, which has severely constrained precise control over rare earth product quality. To break through this technical bottleneck, a dedicated technical research initiative was carried out relying on the key laboratory of the State Administration for Market Regulation (Rare Earth Product Detection and Traceability) established at Jiangxi University of Science and Technology. Through the research team’s unremitting efforts, breakthroughs were achieved in detection technology, and overall technical capabilities reached a new level. The team successfully developed multiple key rare earth detection technologies, among which the inductively coupled plasma tandem mass spectrometry method for directly determining rare earth impurity content in high-purity rare earths was particularly notable. This technology successfully overcame bottlenecks of traditional methods, such as the need to separate the matrix in advance and high detection limits. It features significant advantages including high sensitivity, high accuracy, and rapid detection, enabling direct and precise determination of trace rare earth impurities in high-purity rare earths and providing solid technical support for rare earth product quality control. (CCTV News) US dollar: As of 11:42, the US dollar index fell 0.09% to 99.55. According to CME “FedWatch”: the probability that the US Fed will keep rates unchanged through September was 66.9%, and the probability of a cumulative 25-bp hike was 33.1%. The probability that the US Fed will keep rates unchanged through October was 53.6%, the probability of a cumulative 25-bp hike was 39.8%, and the probability of a cumulative 50-bp hike was 6.6%. Chicago Fed President Goolsbee said recent CPI data were encouraging, but inflation in May and June had previously remained elevated; only if the momentum seen in June continues over the next three to four months can one be confident that prices are steadily returning to the 2% target. He supported keeping rates unchanged in July, saying inflation remains the biggest concern and that the economy and employment are “basically stable.” He warned that continued declines in retail sales would be concerning, as consumption is a key pillar of the US economy. In addition, he expressed concern about the recent pullback in productivity growth, saying that if AI-driven growth cannot be sustained, the narrative around AI and monetary policy will need to be revisited. As for whether to reduce the number of policy meetings, Goolsbee said he had no strong view and was willing to wait for the working group’s recommendations. (Jinshi Data APP) Goldman Sachs Chief Economist Jan Hatzius noted in global macro research released on August 16 that a rate hike at the September FOMC meeting “has become very unlikely,” unless the August data released in early September show a dramatic shift—which is not his baseline scenario. This judgment is based not on a single data point, but on three main threads turning in tandem: cooling consumption, employment trends nearing stagnation, and improving inflation. (Wallstreetcn) Data: Today will see the release of China’s July total retail sales (YoY), China’s July industrial value-added above designated size (YoY), Canada’s July CPI (MoM), the US August New York Fed Manufacturing Index, the US August NAHB Housing Market Index, and other data. Key items to watch: the National Bureau of Statistics (NBS) will release the monthly report on residential sales prices in 70 large and medium-sized cities; the State Council Information Office will hold a press conference on national economic performance; and the National Energy Administration will release monthly data on nationwide electricity consumption around the 15th of each month. Crude oil: As of 11:42, oil prices in both markets rose, with WTI up 0.22% and Brent up 0.46%. Oil prices edged up on Monday as traders looked for the next catalyst to drive direction. A new round of Israeli attacks on Lebanon and the possibility of new US sanctions on Iran heightened geopolitical uncertainty. (Jinshi Data APP) Kpler data showed that due to attacks on oil tankers and stalled US-Iran talks, vessel traffic through the Strait of Hormuz decreased over the past weekend. Five bulk commodity vessels passed through the strait on Saturday, while none passed on Sunday, a sharp drop from 31 over the previous weekend. (Jinshi Data APP) Spot market overview: ► ► ► Other metals spot midday commentary will be updated later; please refresh to view~

According to a post on CATL’s Weibo account, today, at the 2026 CATL Core Operations Carbon Neutrality Launch Conference, Huang Bin, Director of CATL’s Procurement Center and Director of the Planning and Materials Control Department, said that more than 80% of carbon emissions across the full life cycle of lithium batteries come from various links in the supply chain. In the next phase, CATL’s goal is to achieve carbon neutrality across the entire value chain—from mineral resources to finished batteries—by 2035. To achieve this goal, the key lies in coordinated efforts across the supply chain. From accurately accounting for its carbon footprint to the end-to-end process of targeted emissions reduction, CATL broke down the goals in detail and formulated a specific action plan.

The US Department of Commerce finalized an affirmative antidumping duty on steel concrete reinforcing bar imported from Vietnam, ruling that the products were sold below fair market value. The agency applied a 128.53% weighted-average dumping margin against the Hoa Phat group and a 136.57% margin for the Vietnam-Wide Entity. The prohibitive tariffs aim to shield domestic steel mills from unfairly priced Southeast Asian long product imports.

The US Department of Commerce issued preliminary results from its administrative review of the antidumping duty order on large-diameter welded pipe from Greece. Regulators determined that Corinth Pipeworks' shipments to the US between May 2024 and April 2025 were not sold below normal value, yielding a preliminary 0% dumping margin. If finalized, the targeted pipe entries will be liquidated without any punitive antidumping duties.

According to the China Hydrogen Energy Development Report (2026) released by the National Energy Administration on August 11, as of June 2026, the nationwide scale of built and under-construction renewable energy-based hydrogen production capacity had climbed to 1.4 million mt/year, of which more than 250,000 mt/year had been built and commissioned (as of year-end 2025), doubling from year-end 2024. Total hydrogen capacity nationwide exceeded 51 million mt/year, and production exceeded 39 million mt. Commissioned capacity of green ammonia was 700,000 mt/year, and green methanol 380,000 mt/year. Nationwide, about 620 hydrogen refueling stations had been built cumulatively, and the length of commissioned pure-hydrogen pipelines exceeded 350 km. The average price on the hydrogen production side was 26.2 yuan/kg, and the average price on the consumption side was 44.5 yuan/kg. Fuel cell automobile ownership was about 32,000 units. The unit cost of electrolyzers fell from 15,000 yuan/kW two years ago to 7,000 yuan/kW, a cumulative decline of more than 63%. This week, there was temporarily no offline public delivery information. Project Updates Sinopec Xinjiang Kuqa 10kt-Class Green Hydrogen Demonstration Project : Sinopec announced that all 52 alkaline electrolyzers in the project achieved 100% continuous operation at full load, reaching designed capacity. A 300 MW PV direct power supply was used for water electrolysis to produce hydrogen, with green hydrogen purity reaching 99.999% and annual green hydrogen production of 20,000 mt, which was delivered directly via pipeline to Tahe Refining & Chemical to replace the original natural gas-based hydrogen production unit, reducing carbon dioxide emissions by nearly 500,000 mt per year. All large circular alkaline electrolyzers used in the project were supplied by China enterprises, with a localisation rate of 100%. Combined with local solar irradiation conditions, the PV-side levelized electricity cost had fallen to 0.15 yuan/kWh, translating into a full green hydrogen production cost of about 18 yuan/kg. From “the world’s largest” to “stable reach full production,” it validated that 10kt-class green hydrogen facilities can operate reliably over long cycles. Shenzhen Energy Etoq Banner Wind and Solar Power Hydrogen Production Integrated Green Ammonia Synthesis Project : The hydrogen production station was fully commissioned. The project was among the first batch of hydrogen energy pilots of the National Energy Administration and a wind and solar power-based hydrogen-to-green-ammonia demonstration project in Inner Mongolia, with a total investment of 3.5 billion yuan. The project was equipped with a 505 MW wind and solar power supply (including 500MW wind power and 5MW off-grid PV), configured with 48 electrolyzers, with a designed annual output of 20,000 mt of green hydrogen. Downstream, it was paired with a 150,000 mt green ammonia synthesis unit, building a full-chain industrial model of “green electricity–green hydrogen–green ammonia.” Hebei Zhangjiakou Kangbao County Renewable Energy Hydrogen Production and Liquefaction Plant Project : It entered the final sprint toward commissioning. Phase I investment was 1 billion yuan, with a designed annual output of 12,000 mt of green hydrogen, and it will soon be formally commissioned and reach full production. The project was built by Hebei Hongmeng New Energy; at present, a single production line has completed the full hydrogen production test process, with all indicators meeting the designed standards. As the core gas source end of the Kangbao–Caofeidian long-distance green hydrogen pipeline (total length of about 1,037.82 km), once commissioned it will fill the low-carbon fuel gap in core industrial scenarios in the Beijing-Tianjin-Hebei region. Huadian Yushu Hydrogen-Based Energy Integration Demonstration Project : First public announcement for EIA public participation. The project is located in the Chemical Industry Park of Wukeshu Economic and Technological Development Zone, Yushu, Changchun, and plans to build a 240,000 mt/year green methanol production line, deploy 800 MW of wind power and supporting power transmission lines, and a 32,000 mt/year green hydrogen production project, with 44 sets of 2,000 Nm³/h alkaline electrolyzers and 22 sets of 2,000 m³ hydrogen spherical tanks, as well as a 250,000 mt/year methanol unit. Phase I will implement 300 MW of wind power and a 10,000 mt/year green hydrogen project, with a total investment of about 3.121 billion yuan, and plans to start construction in November 2025 and complete in June 2027. Gansu 100,000 mt/year Green Methanol Production Project : Approved. The project will couple water electrolysis hydrogen production with biomass gasification, and build units including gasification, purification, methanol synthesis, and rectification, supported by 48 sets of water electrolysis hydrogen production systems, with a total investment of 1.05 billion yuan. Shaanxi Dingbian County Green Hydrogen Base Project : Dingbian County, Shaanxi, and Shaanxi Hydrogen Energy Company signed a strategic cooperation framework agreement for a green hydrogen base with a total investment of 30 billion yuan. The first phase will build new energy and hydrogen production plants with 12,000 mt/year capacity of green hydrogen, and also plans an entire industry chain layout including hydrogen refueling stations, green ammonia, natural gas hydrogen blending, and hydrogen pipeline transmission. China’s First High-Pressure, Long-Distance Green Hydrogen Pipeline (Damaoqi–Baotou) : The main part of the project is basically completed, entering the final sprint toward commissioning. The pipeline has a total length of 195 km, connecting the Baiyun’ebo wind and solar power hydrogen production base with Baotou’s industrial core area. The project overcame the challenge of hydrogen embrittlement in high-pressure hydrogen transmission; relying on rare-earth-modified L360MH steel-grade dedicated pipes, it established a safety evaluation system centered on the hydrogen embrittlement sensitivity index, fracture toughness, and fatigue crack growth rate, breaking through the technical bottleneck of long-distance pure hydrogen transmission. Construction in mountainous areas is currently in the final stage, and pigging and pressure testing are being carried out on the plain section. DianTou Green Energy Yancheng Jidian Green Hydrogen Production, Storage, Transportation, and Utilization Integrated (Phase I) Demonstration Project : Tendering for water electrolysis hydrogen production equipment has been launched. The project is located in Dafeng District, Yancheng, Jiangsu Province, and adopts alkaline water electrolysis technology. The total planned hydrogen production scale is 8,000 Nm³/h. This tender will procure 4 sets of alkaline electrolyzers with a rated hydrogen production capacity of 1,000 Nm³/h, 2 sets of 2,000 Nm³/h gas-liquid separation skids, 4 sets of IGBT rectifier power supply skids, and 2 sets of dual-split rectifier transformers with a capacity of no less than 11.5 MVA. Qianjiang Qingbei Hydrogen Energy Project : Construction has entered the final stage, and equipment commissioning is being rolled out in full. The installation of hydrogen production equipment has been fully completed, with an annual output of 23 million Nm³ of high-purity green hydrogen. After Phase II is completed, the total capacity will reach 20,000 Nm³/h, making it the largest green electricity-based hydrogen production base in Central China. Zhejiang Jinjuhua Chemical Co., Ltd. : A 5,000 Nm³/h comprehensive utilization project for hydrogen resources has been filed. The project will be implemented in the High-tech Area of Zhizao New City, Quzhou City, and is a “zero land” technical renovation project for industrial enterprises in Zhejiang Province, with a total investment of 16.62 million yuan. Relying on the existing hydrogen transmission pipeline and current site, the project will install 5,000 Nm³/h hydrogen pressurization equipment to recover vented hydrogen from the electrolysis plant for supply to the methanol unit, and will be equipped with a high-speed magnetic-levitation turbo generator set to tap into power generation from the pressure differential of carbon dioxide. Baotou Haoyu New Energy Co., Ltd. : The Airport Road integrated oil-gas-electric-hydrogen energy supply station project has completed an extension filing. The project is located in Donghe District, Baotou City, with a total investment of 40 million yuan and a total site area of approximately 3,000 m², to be implemented in two phases. One integrated oil-gas-electric-hydrogen energy supply station will be newly built, equipped with CNG refueling, gasoline fueling, eight fast charging piles, and hydrogen refueling facilities. Saudi NEOM Green Hydrogen and Green Ammonia Project : All engineering construction has been completed and the project has entered the commissioning stage, with plans to achieve commercial operation in 2027. The project has a total investment of $8.4 billion (approximately 57 billion yuan) and is equally held by ACWAPower, AirProducts, and NEOM. It is supported by a 4 GW wind and solar power complementary renewable energy power station and 2.2 GW of electrolyzer capacity. After commissioning, it will produce 600 mt of zero-carbon green hydrogen per day, all of which will be converted into green ammonia for export, with annual conversion of up to 1.2 million mt of green ammonia. The hydrogen production segment adopts Thyssenkrupp Nucera alkaline water electrolysis technology, and Thyssenkrupp has delivered more than 1 GW of electrolyzer capacity. Netherlands PosHYdon Offshore Wind-to-Hydrogen Demonstration Project : It has been successfully commissioned on the in-service PL-Q13a-A offshore natural gas jacket platform and has produced green hydrogen. The platform is approximately 13 km from the Scheveningen coast and is the first fully electrified production platform in the Dutch North Sea. Led by TNO and jointly implemented by 15 organizations including DEME, Eni, Gasunie, and NelHydrogen, the project focuses on testing electrolyzer operating efficiency under conditions of fluctuating wind power output, and plans to release core test results to the public in autumn 2026. Sasol and Envision Energy : Sasol has commissioned Envision Energy to conduct a design study for the green hydrogen system at its Sasolburg operating base in South Africa. The collaboration was showcased during the South Africa–China Energy Investment Conference, and the design study will assess integrated solutions for renewable power generation, energy storage, and electrolyzer technologies. Green hydrogen produced in Sasolburg may be used in the future to produce eMethanol and potential sustainable aviation fuel (eSAF). The design phase is expected to be completed by year-end. Policy Review 1. Notice of the National Development and Reform Commission (NDRC) and the National Energy Administration on Issuing the “15th Five-Year” Plan for Coal Industry Development (issued on August 10, Fa Gai Neng Yuan [2026] No. 979). For the first time, the plan includes hydrogen-powered mining trucks in its core deployment, proposing to “orderly carry out large-scale replacement of fuel-powered heavy-duty trucks with electric heavy-duty trucks and hydrogen-powered mining trucks” in open-pit mine transportation, and to “reasonably plan and build charging and battery swapping stations and hydrogen refueling stations in eligible mining areas.” It also encourages coal-to-oil and gas and coal chemical projects to carry out large-scale substitution with green hydrogen, promoting the implementation and application of hydrogen energy in production and transportation in the coal industry and in industrial integration scenarios. 2. The National Energy Administration released the China Hydrogen Energy Development Report (2026) (August 11). The report showed that in 2025, China’s full hydrogen value chain of “production, storage, transportation, and use” achieved rapid growth; capacity of renewable energy-based hydrogen production that was completed and put into operation exceeded 250,000 mt/year, up more than 1x YoY. Large-scale pilot projects for hydrogen-ammonia-methanol were carried out in the Three-North region, with diversified application scenarios for wind and solar power–hydrogen coupling implemented in Inner Mongolia, Xinjiang, Hebei, and other areas. The report assessed that China’s hydrogen energy industry is moving from “pilot demonstration” to “large-scale application,” and during the “15th Five-Year” period will gradually shift from a “policy-driven” to a new “market-driven” stage. It proposed formulating an implementation plan for hydrogen energy industry development to clarify development approaches and key tasks. 3. Notice of the Ministry of Industry and Information Technology and the Ministry of Emergency Management on Issuing the “15th Five-Year” Plan for the Development of the Safety and Emergency Equipment Industry (August 13). The plan includes hydrogen safety storage, transportation, and measurement-and-control technologies—together with lithium battery thermal runaway prevention and control and energy storage safety monitoring—into the safety production technology directions for key industry sectors. It clearly lists hydrogen safety-related technologies as key research priorities in the safety and emergency equipment field during the “15th Five-Year” period, providing national-level policy guidance for building a safety system for the hydrogen energy industry. 4. The Zhengzhou Municipal Bureau of Industry and Information Technology released a public notice on proposed recipients of reward funds for the demonstration application of fuel cell vehicles (August 10). Pursuant to Zheng Gong Xin [2026] No. 61, following enterprise self-application, expert review, third-party audit, and other procedures, 43 enterprises including Zhengzhou Yutong Group Co., Ltd. and their corresponding projects were preliminarily identified as proposed recipients of reward funds for the demonstration application of fuel cell vehicles. The public notice period runs from August 10 to August 16, 2026. 5. Fujian Province Issued the “15th Five-Year Plan” for the Development of Emerging and Future Industries. The document proposed that, in the medium term, it is expected to promote scaled preparation of clean energy such as green hydrogen, accelerate the development of production and refueling systems for hydrogen-based green fuels, and expand diversified hydrogen energy application scenarios; in the long term, it is expected to develop distinctive technology pathways such as “ammonia–hydrogen” and build a green hydrogen-based fuel production site along the southeastern coast. 6. The People’s Government of Liaoning Province issued a notice to promote the standardized, scaled, and market-oriented development of new-type energy storage from three aspects—planning guidance, market mechanisms, and institutional management—carry out pilot demonstrations for molten salt ESS, hydrogen energy storage, and others, emphasize the value of long duration energy storage (LDES), and clarify the diversified development of technology pathways. 7. The Guangzhou Municipal National Development and Reform Commission (NDRC) released a public notice soliciting opinions on the “Guangzhou Energy Development ‘15th Five-Year Plan’.” It proposed advancing the substitution of petroleum consumption in the transportation sector with electricity, green hydrogen-based energy, sustainable aviation fuel, and others, and accelerating the promotion of new energy vehicles such as EVs and hydrogen fuel vehicles. The target is to put into operation 50,000 hydrogen fuel cell vehicles, 30 hydrogen fuel cell vessels, and 2,000 long-range hydrogen-powered drones by 2030. 8. The General Office of the People’s Government of Sichuan Province issued the “Work Plan of Sichuan Province to Intensify Efforts to Promote the Scaled Development and Application of New Energy Trucks.” The plan proposed expanding the application of hydrogen fuel cell vehicles, continuously promoting the quality improvement and capacity expansion of the “Chengdu–Chongqing Hydrogen Corridor,” and building in batches green hydrogen routes such as the “Sichuan–Tibet Route,” “Chengdu–Deyang–Meishan–Ziyang Metropolitan Area,” “Panzhihua–Xichang–Ya’an–Chengdu,” “Chengdu–Deyang–Mianyang–Guangyuan,” “Chengdu–Ziyang–Zigong–Luzhou,” and “Chengdu–Suining–Nanchong–Dazhou.” 9. The People’s Government of Beijing Municipality issued the “Beautiful Beijing Development Plan for the ‘15th Five-Year Plan’ Period.” It emphasized improving measures such as convenient access for new energy vehicles, promoting the application of hydrogen fuel vehicles, and continuously advancing the new energy transition of trucks and buses. Enterprise Updates Dongfang Electric (Dongfang Hydrogen Energy) : On August 11, Dongfang Electric released an announcement of a board resolution, which reviewed and approved the proposal for Dongfang Hydrogen Energy’s Series B financing. Dongfang Hydrogen Energy planned to conduct Series B financing of no more than 1.17 billion yuan, with Dongfang Electric, Dongfang Boiler, and external investors making capital increases simultaneously. After the capital increase is completed, the combined shareholding of the two will remain unchanged at 52.95%. The funds will be used for hydrogen energy industry cultivation, technology iteration, and capacity development. This financing will become one of the few single-round financings at the 1 billion level in China’s hydrogen energy industry in non-IPO and non-SPAC scenarios. Houpu Co., Ltd. : Disclosed its 2026 semi-annual report. In H1, revenue reached 425 million yuan, up 8.36% YoY; net profit attributable to shareholders was 83.05 million yuan, up 518.55% YoY, turning losses into profits. The company has established a full-chain product and service system covering production, storage, refuelling, and use: its third-generation 1,000 Nm³/h alkaline water electrolysis hydrogen production equipment completed an iterative upgrade and continued supplying European green hydrogen projects; its solid-state hydrogen storage system achieved commercial deployment and participated in a 100-kg-class solid-state hydrogen storage and hydrogen refuelling integration demonstration project in Southwest China; 35 MPa hydrogen refuelling turnkey equipment achieved batch deliveries, and 70 MPa equipment expanded into the general aviation sector; core components such as hydrogen nozzles and high-pressure hydrogen flow meters completed localisation substitution; and the liquid hydrogen refueller completed factory testing. The company also launched multi-steady-state flexible-system green ammonia synthesis technology, with maximum unit production of up to 10,000 mt/year, operating flexibility of 30%–110%, and green ammonia purity ≥99.9%. EPC projects have already been implemented in practice, including CNNC HuiNeng’s Inner Mongolia PV hydrogen-to-ammonia coupling project and Zhangye skid-mounted wind power hydrogen production and green ammonia production project. Rongcheng New Energy Group : Multiple implementation actions took place this week. On August 6, a batch delivery ceremony for 40 hydrogen-powered cold-chain trucks was held in Haikou; they are expected to serve frontline cold-chain transportation across Hainan, supported by an integrated methanol-to-hydrogen production and refuelling station to enable on-site hydrogen production and on-site refuelling. On August 7, Rongcheng New Energy and Wenfeng Group held a commissioning ceremony for the second batch of hydrogen heavy-duty trucks; following the commercial deployment of the first batch, this further expanded zero-carbon transport capacity in Tangshan, adopting an integrated model of "vehicle leasing + energy replenishment + scenario operations". In addition, four hydrogen car models under Rongcheng New Energy (a 170 kW hydrogen heavy-duty truck and 110 kW hydrogen sprinkling truck, road sweeper, and compressed garbage truck) were included in MIIT’s 410th batch of product announcements, covering two major application scenarios: trunk logistics and urban sanitation. Guoruichen (Qingdao) New Energy Technology Co., Ltd. : On August 7, it held a full-chain hydrogen energy launch event, systematically showcasing for the first time an independent technology matrix spanning the entire industry chain of "production–storage–refuelling–use". It launched a new-generation PEM water electrolysis hydrogen production device tailored to the intermittency of wind and solar power, paired with a self-developed integrated wind-and-solar-plus-storage hydrogen smart energy management system; developed a room-temperature, low-pressure solid-state hydrogen storage device based on R&D of new-type lightweight, high-capacity hydrogen storage alloys; and rolled out full-power-range hydrogen fuel cell systems covering multi-tier application scenarios, including lightweight metal-plate stacks for low-altitude scenarios and graphite-plate stacks for heavy-duty truck scenarios. It implemented a modular hydrogen two-wheeler (hydrogen swapping takes only seconds) and an industrial-grade hydrogen drone with a driving range of up to 2.5 hours, and released a three-tier hydrogen supply network solution of "wind and solar power–hydrogen production–micro-stations" as well as a comprehensive solution for a "hydrogen zero-carbon industrial park". Anhui Mingtian Hydrogen Energy Technology Co., Ltd. : As a national-level “Little Giant” enterprise specialising in niche sectors with cutting-edge technologies, it built China’s first 10,000-set-scale fuel cell industrialisation plant, with products covering fuel cell stacks across the full power range of 10 kW–260 kW. It has cumulatively filed more than 400 national patents; the service life of its fuel cell systems increased from 1,000 hours to over 20,000 hours, and the cost dropped from 25,000 yuan per kW to 2,000 yuan. The price of a single air compressor fell from 178,000 yuan for imported units to 14,000 yuan through localisation. Its self-developed MTSYS-120 marine fuel cell system obtained Anhui province’s first China Classification Society (CCS) type approval certificate for hydrogen fuel cells; the system power is 120 kW and can be expanded to the megawatt (MW) level through modular combinations. Shunhua New Energy : On August 11, the Shunhua Hydrogen Energy Equipment Innovation Center Science and Technology Industrial Park, with a total investment of approximately 150 million yuan, was officially put into operation in Jiading, Shanghai. The park is a Shanghai “industrial buildings upward” demonstration project, integrating hydrogen energy equipment R&D, production, and settlement. At the opening ceremony, Shunhua New Energy signed strategic cooperation agreements with Shanghai Electric Green Energy Company and Hunan Liyu Gas Power, planning to jointly develop emerging hydrogen energy application scenarios such as offshore new energy and green-fuel power generation. Zhongchuang Yonghydrogen : Its self-developed mobile integrated hydrogen production and refuelling engineering prototype officially rolled off the line. The overall equipment volume is only 0.4–1 m³, and it can produce high-purity hydrogen with a purity of over 99.99% using only deionised water as the raw material. It is equipped with 5%–120% ultra-wide load dynamic regulation technology, supports on-demand use and charging, requires no civil works construction and no supporting pipeline network, and can be widely adapted to diverse scenarios including hydrogen forklifts, sanitation vehicles, vehicles and vessels, two-wheeled hydrogen vehicles, portable hydrogen power supplies, and scientific research experiments. CIMC Enric Holdings Limited : Anhydrous ammonia transport vehicles escorted the world’s largest single-batch green ammonia export. A 3,750 mt shipment of green ammonia produced in Da’an, Jilin was loaded and departed from Lianyungang, Jiangsu for South Korea, setting a new world record for single-batch green ammonia exports. The green ammonia came from SPIC’s “Hydrogen Continent · Da’an Green Ammonia” demonstration project (annual output: 32,000 mt of green hydrogen and 180,000 mt of green ammonia). The project has operated safely and stably for more than 300 days, achieving five “world’s first” milestones, including the world’s first ISCCEU green ammonia certification. Hangzhou Fenghua Hydrogen Energy Technology Co., Ltd. : On August 6, it successfully won the bid for projects related to the China Energy Engineering Group Zhejiang Institute’s Marine Integrated Energy Island, validating the performance of its PEM electrolyser products and marking further technological innovation and business implementation in offshore wind power hydrogen production scenarios. Adjustment to Electricity Price Policy for Hydrogen Energy Equipment Manufacturing Enterprises in Inner Mongolia : The Inner Mongolia Autonomous Region removed provisions in the original policy under which production electricity consumption by hydrogen energy equipment manufacturing enterprises referenced the electricity prices for strategic emerging industries, and production electricity consumption by enterprises in eastern Inner Mongolia participated in market transactions with a 100% new energy allocation. Hydrogen energy equipment manufacturing enterprises will no longer enjoy the above exclusive electricity price policy and will revert to the market-based trading mechanism for ordinary large-scale industrial electricity consumption. Sichuan Jinxiang Sairui Chemical Co., Ltd. : On August 14, the company stated that the world’s first kt-scale pilot plant for producing sustainable aviation fuel via CO2 hydrogenation, jointly developed with Professor Wei Fei’s team at Tsinghua University and Sichuan Aolifen Catalytic Materials Co., Ltd., successfully passed a 72-hour continuous operation assessment, opening up a new green technology pathway from CO2 to aviation propulsion fuels. Patent Applications 1. Hopewind (China) filed patent application CN122512780A, disclosing “Hydrogen Production Power Supply, Renewable Energy Hydrogen Production System, and Hydrogen Production Power Supply Control Method.” The hydrogen production power supply includes a first-stage AC/DC converter and a second-stage DC/DC converter, and can autonomously maintain AC bus stability when renewable energy power fluctuates, avoiding shutdown of the hydrogen production system due to power shortfalls, ensuring continuity of hydrogen production operations, and extending the service life of the electrolyzer. 2. Huizhou EVE Hydrogen Energy Co., Ltd. (China) filed patent application CN122543087A, disclosing “Catalyst Layer, Electrode, Membrane Electrode Assembly, Electrolysis Device, and Electrolysis Process.” The catalyst layer material includes a catalyst and an adhesive containing modified groups. The modified groups include cationic hydrophilic groups and non-ionic groups, enabling the catalyst layer to firmly bind water molecules while maintaining an appropriate hydrophilic–hydrophobic balance, improving water retention and interfacial performance, thereby enhancing the performance of the catalyst layer, membrane electrode assembly, and electrolysis device. 3. Shanghai Qingshang Hydrogen Energy Technology Co., Ltd. (China) filed patent application CN122558479A, disclosing “A Nano Aluminum-Based Reversible Hydrogen Storage Composite Material and Its Preparation Method.” Using aluminum powder (50-60 parts), composite catalyst (5-6 parts), copper powder (2-3 parts), titanium powder (2-3 parts), cobalt powder (1-2 parts), and grinding aid (6-7 parts) as raw material, and through processes such as pressing, sintering, and ball-milling hydrogenation, aluminum trihydride (with relatively high hydrogen storage density) is generated within the aluminum-based alloy material. By compounding the composite catalyst and a nanostructure, reversible hydrogen absorption and desorption of the nano aluminum-based reversible hydrogen storage composite material is achieved. 4. China Three Gorges Renewables (Group) Co., Ltd. (China) obtained patent CN224582854U, disclosing “An Integrated Power Generation System for Subsea Hydrogen Energy Storage”. The system includes a power conversion module, a power aggregation module, a water electrolysis hydrogen production module, and a hydrogen energy storage module. It uses electricity generated by offshore power generation facilities to electrolyse seawater to produce hydrogen and store it, maximising the rational use of resources and improving the stable operation of the power grid. Technology Footprint/Technical Specifications 1. Sinopec’s Xinjiang Kuqa 10kt-class green hydrogen demonstration project achieved 100% full-load continuous operation of all 52 alkaline electrolyser units, reaching the designed capacity. All large circular alkaline electrolysers used in the project were supplied by enterprises in China, with a localisation rate of 100%. The unit cost of electrolysers decreased from 15,000 yuan/kW two years ago to 7,000 yuan/kW. Combined with local solar irradiation conditions, the PV-side levelised cost of electricity decreased to 0.15 yuan/kWh, translating into a total green hydrogen production cost of approximately 18 yuan/kg, preliminarily demonstrating economic competitiveness with fossil-fuel-based hydrogen production. This achievement verified that 10kt-class green hydrogen facilities can operate reliably over long cycles, providing the most solid data support for subsequent large-scale commercialisation. 2. Shandong Saikesaisi Hydrogen Energy Co., Ltd. took the lead in China in achieving a breakthrough in megawatt-class PEM water electrolysis hydrogen production core technology, becoming the first enterprise in China to realise the development, assembly, and industrialisation deployment of megawatt-class PEM electrolysers, breaking the monopoly of overseas core technologies. Without sacrificing performance, the enterprise significantly reduced the use of precious metals in catalysts within hydrogen production electrolysers, substantially lowering system costs, and established a step-by-step validation pathway from laboratory prototypes to 100-watt-class small-scale testing, 10-kW pilot-scale testing, and then megawatt-class engineering prototypes. 3. The main part of the project for the nation’s first high-pressure, long-distance green hydrogen pipeline (the Damaoqi–Baotou long-distance hydrogen transmission pipeline) was basically completed. The pipeline has a total length of 195 km. The project overcame the challenge of hydrogen embrittlement in high-pressure hydrogen transmission, and, in collaboration with research institutes, developed dedicated L360MH steel-grade pipes with added rare-earth elements. It innovatively established a safety evaluation system centred on the hydrogen embrittlement sensitivity index, fracture toughness, and fatigue crack growth rate, providing a replicable and scalable high-pressure pure hydrogen pipeline engineering model for the large-scale construction of China’s hydrogen energy storage and transportation infrastructure. 4. The draft standard GB/T34593 Safety Requirements for Fuel Cell Engines, led by FAW Jiefang as the principal drafter, was reviewed and discussed at the 42nd (second in 2026) meeting of the Electric Vehicles Sub-Technical Committee of the National Automotive Standardization Technical Committee and the Fuel Cell EV Standards Working Group. The revised national standard is about to be implemented. The industry will accelerate the phase-out of low-reliability and non-compliant products, driving market competition to shift from simple parameter comparisons to a comprehensive contest of safety, durability, and life cycle cost, and shifting the industrial development model from “promotion first, regulation later” to standards-first and regulation-led. 5. The world’s first kt-scale pilot plant for producing sustainable aviation fuel via CO₂ hydrogenation (jointly developed by Sichuan Jinxiang Sairui Chemical, Professor Wei Fei’s team at Tsinghua University, and Sichuan Aolifen Catalytic Materials Co., Ltd.) successfully passed a 72-hour continuous operation assessment, opening up a new green technology pathway from CO₂ to aviation propulsion fuel and laying a critical foundation for the industrial-scale deployment of sustainable aviation fuel produced from green hydrogen coupled with CO₂. 6. The main structure of the plant building for CSSC Peric Hydrogen Energy’s Shuangyashan Jixian electrolyzer manufacturing base was topped out. This project is Heilongjiang Province’s first equipment manufacturing project for hydrogen production via water electrolysis, with a total investment of 1 billion yuan. It is expected to achieve an annual output of 30 large electrolyzers in the 1,000–2,000 Nm³/h class. Leveraging the mature technology of CSSC (Handan) Peric Hydrogen Energy, it is committed to realizing independent and controllable capabilities across the entire industry chain from key equipment to end-use products, and to providing key supporting equipment for Jixian County’s green methanol industry.

Today, at the 2026 CATL Core Operations Carbon Neutrality Launch Event, Huang Bin, Director of CATL’s Procurement Center and Director of the Planning and Material Control Department, stated that more than 80% of carbon emissions across the entire lithium battery life cycle come from various stages of the supply chain. In the next phase, CATL’s goal is to achieve carbon neutrality across the full value chain—from mineral resources to finished batteries—by 2035. To achieve this goal, the key lies in coordinated efforts across the supply chain. From accurately accounting for its carbon footprint to the end-to-end process of targeted emissions reduction, CATL broke down the goals in detail and developed a specific action plan.

Editor’s Note: Looking back at the H1 rare earth market, it was truly a case of “you reap what you sow.” The rare earth sector as a whole drifted higher amid consolidation, while price performance diverged across products. Pr-Nd oxide rose 22.42% in H1, dysprosium oxide increased 5.97%, and terbium oxide gained 8.37%. As the tide lifts all boats, the rise in rare earth prices directly boosted operating returns for enterprises across the industry chain. According to SMM statistics, the 10 rare earth-related firms that have disclosed semi-annual reports, preliminary earnings releases, and earnings forecasts all delivered varying degrees of earnings growth in H1. The market is now eagerly awaiting the realization of demand in the traditional peak season. At this period of transition from summer to autumn, can the H2 rare earth market sustain H1’s gains, and what kind of market landscape will emerge for upstream and downstream players in the rare earth industry chain? Multiple Rare Earth Companies Report Strong H1 Results A semi-annual earnings forecast disclosed by China Rare Earth on the evening of July 13 showed that, based on preliminary estimates by the company’s finance department, net profit attributable to shareholders of the publicly listed firm for the 2026 semi-annual period was expected to be 3,700 million yuan to 4,300 million yuan, an increase of 297.5013 million yuan to 357.5013 million yuan from the same period last year, up 410.35% to 493.11% YoY. Net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses for the 2026 semi-annual period was expected to be 3,680.027 million yuan to 4,280.027 million yuan, an increase of 276.2326 million yuan to 336.2326 million yuan from the same period last year, up 301.00% to 366.39% YoY. Regarding the main reasons for the expected earnings increase for the period, China Rare Earth stated: (1) In H1 2026, amid changes in the supply-demand pattern of the rare earth industry and YoY increases in prices of major rare earth products, the company enhanced overall operating value of its core rare earth business by innovating an integrated operating model, coordinating rare earth raw material procurement for separation plants and full-product market sales, and dynamically adjusting its product output mix based on analysis of changes in supply and demand. (2) The company vigorously advanced loss-making enterprise remediation and deepened reform initiatives, achieving notable results; resources were further concentrated in core main businesses and advantaged businesses, and loss-making enterprises significantly reduced losses YoY. (3) The company’s investee, Dabaoshan, maintained stable and high output; sales and prices of copper and sulfur products both rose YoY, increasing enterprise profitability, and the company’s investment income recognized under the equity method increased. A semi-annual earnings forecast disclosed by Huahong Technology on the evening of July 13 showed that net profit attributable to the parent in H1 2026 was expected to be 320 million yuan to 360 million yuan, up 301.84%–352.08% YoY. Regarding the reasons for the performance change, Huahong Technology stated: In H1 2026, benefiting from industry policies and a rebound in downstream demand, prices of major rare earth products in China climbed steadily. The company’s comprehensive utilization segment for rare earth resources seized market opportunities, fully leveraging its overall advantages in capacity scale, cost control, and process technologies, continuously optimizing supply–production–sales coordination and inventory management strategies, and effectively driving a full release of profitability in this segment. The company continued to deepen its layout across the rare earth industry chain, with its downstream rare earth permanent magnet material business expanding steadily. Benefiting from stable demand in end-use sectors such as NEVs, wind power, and industrial automation, this segment continued to scale up, with revenue and product mix continuously improving, becoming an important supplement to earnings growth. Xiamen Tungsten’s semiannual performance forecast showed that, based on preliminary calculations by the finance department, it was expected that in H1 2026, net profit attributable to shareholders of the publicly listed firm would be about 2.2160318 billion yuan, an increase of about 1.2467133 billion yuan compared with the same period last year, up about 128.62% YoY. Based on preliminary calculations by the finance department, it was expected that in H1 2026, net profit attributable to shareholders of the publicly listed firm after excluding non-recurring gains and losses would be about 2.1760263 billion yuan, an increase of about 1.2534882 billion yuan compared with the same period last year, up about 135.87% YoY. Regarding the main reasons for the expected increase in performance for the period, Xiamen Tungsten explained: In H1, amid a market environment where material prices for major raw materials such as tungsten, cobalt, lithium carbonate, and Pr-Nd oxide rose YoY and swung wildly, the company responded proactively, dynamically adjusted its operating strategy, and drove a linked rise in selling prices; meanwhile, it continued to enhance product quality and market development capabilities. Sales of major products such as alloy bars, cutting tools, power battery cathode materials, and magnetic materials climbed steadily, and profitability across the company’s three core businesses—tungsten & molybdenum, new energy materials, and rare earths—improved to varying degrees. Ningbo Yunsheng disclosed a performance forecast on the evening of July 14, showing that, based on preliminary calculations by the finance department, it was expected that in H1 2026, net profit attributable to shareholders of the publicly listed firm would be 240 million yuan to 310 million yuan; compared with the same period last year (statutorily disclosed figures), it would increase by 132.1657 million yuan to 202.1657 million yuan, up 122.56%–187.48% YoY. The net profit attributable to shareholders of the publicly listed firm, excluding non-recurring gains and losses, was expected to be 2.1 billion yuan to 2.8 billion yuan for the 2026 semiannual period. Compared with the same period last year (statutorily disclosed data), this was expected to increase by 1.3954 billion yuan to 1.913954 billion yuan, up 137.01% to 216.01% YoY. Ningbo Yunsheng stated that the main reasons for this performance increase were: during the reporting period, the Company remained client demand-oriented, deeply focused on NEVs, consumer electronics, industrial and other application fields, actively explored emerging and regional markets, seized development opportunities for new projects, continuously optimized its business mix, and increased the proportion of revenue from outside China. Meanwhile, the Company continued to deepen refined management, driving higher product gross margins and resulting in an increase in net profit. The semiannual earnings forecast released by China Northern Rare Earth showed that, based on a preliminary estimate by the Company’s finance department, the net profit attributable to owners of the parent was expected to be 19.8 billion yuan to 20.6 billion yuan for the 2026 semiannual period. Compared with the same period last year (statutorily disclosed data), this was expected to increase by 10.5 billion yuan to 11.3 billion yuan, up 112.74% to 121.33% YoY. The net profit attributable to owners of the parent, excluding non-recurring gains and losses, was expected to be 19.9 billion yuan to 20.7 billion yuan for the 2026 semiannual period. Compared with the same period last year (statutorily disclosed data), this was expected to increase by 10.93 billion yuan to 11.73 billion yuan, up 121.90% to 130.82% YoY. As for the main reasons for the performance increase in the current period: In H1 2026, the Company served the national rare earth resources strategy and fully implemented the requirements for secure control of the rare earth industry chain. Affected by factors such as constrained supply on the raw material end of the market and the release of downstream demand across multiple areas with sustained growth, rare earth product prices overall strengthened and consolidated. Centered on the annual production and operating task targets, the Company made coordinated planning and adopted comprehensive measures, strengthened comprehensive budget management, pursued cost reduction, quality improvement and efficiency enhancement in synergy, scientifically organized production and production schedules, stepped up market sales and marketing operations, deepened reform and innovation, strengthened group management and risk prevention and control, and advanced the deep integration of specialized management, lean management and 5S management with high quality. It promoted the construction of key projects, accelerated the development of new quality productive forces through management and scientific research and innovation, and provided solid support and assurance for the Company to achieve sound operating results with strong industry chain value creation capability and core competitiveness. The Company scientifically refined its production organization and operations, and production of rare earth smelting and separation products, rare earth metal products, and rare earth new materials all reached record highs for the same period; its subsidiary Inner Mongolia North Rare Earth Magnetic Materials Co., Ltd. achieved operating revenue of approximately 9.5 billion yuan in H1, up approximately 107% YoY, maintaining a growth trend for three consecutive years; its subsidiary Inner Mongolia Xi’aoke Hydrogen Storage Alloy Co., Ltd. put its first batch of 1,000 hydrogen-powered two-wheelers into official operation in Baotou City, with cumulative safe mileage reaching 170,000 kilometers, and the project’s demonstration effect was significant. The company continued to benchmark against advanced practices both internally and externally to further tap its potential, strengthened refined management, and achieved significant improvements in multiple economic and technical indicators. Based on targeted measures across business segments: the smelting and separation segment overcame new changes in production costs caused by rising prices of raw and auxiliary materials, effectively controlled cost fluctuations, and scientifically organized production and production scheduling to ensure new demand for product supply; the rare earth metals segment used the strengthening of lean production as a key lever and leveraged digital and intelligent tools to further enhance on-site process operation management, driving new breakthroughs in economic and technical indicators such as quality and material consumption ratios; the rare earth new materials and applications segment fully leveraged the advantages of newly added capacity, precisely aligned with client needs, and made new progress in using production to drive sales promotions. The company deepened coordinated linkage across the industry chain, and on the basis of ensuring stable product supply, consolidated the foundation of cooperation with downstream clients. Shenghe Resources’ H1 performance forecast released on July 10 showed that, based on preliminary calculations by the company’s finance department, net profit attributable to owners of the parent for 2026 H1 was expected to be 800 million to 930 million yuan, an increase of 423.0938 million to 553.0938 million yuan compared to the same period last year, up 112.25% to 146.75% YoY. Net profit attributable to owners of the parent for 2026 H1 after deducting non-recurring gains and losses was expected to be 790 million to 920 million yuan, an increase of 426.487 million to 556.487 million yuan compared to the same period last year, up 117.32% to 153.09% YoY. Regarding the main reasons for the expected increase in performance for the period, Shenghe Resources stated that during the reporting period, influenced by factors such as rare earth industry policies and downstream demand, overall market demand for the company’s major rare earth products improved, and product prices and average selling prices rose significantly compared with the previous year. The company seized market opportunities, optimized its production and sales structure, strengthened management empowerment and cost control, thereby driving a substantial increase in performance. According to the semi-annual report recently released by China Rare Earth, in H1, the supply-demand pattern of the rare earth industry continued to be adjusted and optimized; driven by multiple favorable factors such as rare earth industry policies and a boost in downstream market demand, the overall market trend rose, and Pr-Nd product prices increased notably compared to the same period last year. In line with the annual work plan, the company anchored its targets and further increased pressure, rode the momentum and strove to lead, strengthened Party-building leadership, and closely focused on six key tasks—resource security, efficient operations, technological innovation, project development, deepening reform, and capability building—making targeted efforts and achieving significant phased results. Both operational performance and quality improved in tandem, all operating targets and tasks were successfully completed, and the company worked hard to create a new landscape of high-quality leapfrog development, laying the foundation for a strong start to the “15th Five-Year Plan” period. In H1 , the company achieved operating revenue of 1.647 billion yuan; net profit attributable to shareholders of the publicly listed firm of 237 million yuan, up 46.53% YoY; and net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses of 240 million yuan, up 55.49% YoY. The H1 performance forecast disclosed by Tianhe Magnetics on July 9 showed that, based on preliminary calculations by the finance department, net profit attributable to owners of the parent company for H1 2026 was expected to be 73 million yuan to 93 million yuan, representing an increase of 19.5448 million yuan to 39.5448 million yuan compared with the same period last year (statutorily disclosed data), up 36.56% to 73.98% YoY. Net profit attributable to owners of the parent company for H1 2026 after deducting non-recurring gains and losses was expected to be 68 million yuan to 88 million yuan, representing an increase of 32.5723 million yuan to 52.5723 million yuan compared with the same period last year (statutorily disclosed data), up 91.94% to 148.39% YoY. Regarding the main reasons for the expected increase in H1 performance, Tianhe Magnetics stated: 1、 In H1, raw material prices fluctuated at elevated levels overall. The company optimized its pricing strategy for certain existing inventory and new orders, and raised product selling prices. 2、In 2026, the company proactively seized market opportunities and carried out sales efforts around “focusing on emerging markets, deepening customer relationships, and optimizing channel layout,” achieving dual-engine growth driven by both international and China markets. Market development delivered notable results, and overall operating revenue is expected to increase by about 30% YoY, with revenue from China operations expected to increase by about 50% YoY. 3、During the reporting period, the impact of non-recurring gains and losses on net profit was expected to be about 5 million yuan, versus non-recurring gains and losses (after tax) of 18.0275 million yuan in the same period last year. The H1 performance forecast released by JL MAG Rare-Earth on July 1 showed that net profit attributable to shareholders of the parent company in H1 2026 was expected to be 400 million yuan to 460 million yuan, up 31.17%-50.84% YoY. Regarding the reasons for the performance change, JL MAG Rare-Earth stated in its announcement: 1、In H1 2026, the company’s management adhered to the annual operating policy of “upholding lawfulness and compliance, maintaining a customer-oriented approach, focusing on the core magnetic material business, building 20,000 mt of new capacity on schedule, actively deploying motor rotors for embodied robots, and reaching new peaks again.” Through measures such as technological innovation, organizational optimization, digital development, and lean management, the company ensured contract performance and delivery to its broad client base while achieving steady growth in operating performance. The company continued to consolidate its leading position in the new energy and energy-saving environmental protection sectors, actively expanded into emerging markets, and operating revenue was expected to be up about 30% YoY. In particular, operating revenue in the NEV and automotive parts segment was up about 30% YoY; in the robotics and industrial servo motor segment, operating revenue was up about 90% YoY, and embodied-robot motor rotor products had already been delivered in small batches. 2. During the reporting period, the impact of non-recurring gains and losses on net profit was expected to be about 32 million yuan; non-recurring gains and losses (after tax) in the same period last year were 70.9405 million yuan. 3. During this reporting period, due to A-share and H-share equity incentives and the issuance of H-share convertible bonds, related expenses such as share-based payment expenses and financial expenses totaled about 121 million yuan; there were no such expenses in the same period last year. Zhong Ke San Huan released its 2026 H1 performance bulletin on the evening of July 20, showing that in H1, the company achieved operating revenue of 36,137.721 million yuan, up 23.67% YoY; total profit of 1,028.001 million yuan, up 1.18% YoY; net profit attributable to shareholders of the publicly listed firm of 492.189 million yuan, up 11.88% from the same period last year; and after excluding the impact of non-recurring gains and losses such as government subsidies, net profit attributable to shareholders of the publicly listed firm excluding non-recurring gains and losses of 323.035 million yuan, up 2.25% from the same period last year. Zhong Ke San Huan’s semiannual performance bulletin showed that in 2026 H1, amid increasingly intense market competition and a complex and volatile external environment, through the joint efforts of all employees, the company’s core product sales were up YoY, and cost-reduction measures such as optimizing formulation processes and reducing the usage of heavy rare earth helped lift the overall gross margin up YoY; the operations of some subsidiaries improved, achieving reduced losses or a turnaround; meanwhile, the company further improved inventory management, optimized the inventory mix of key raw materials, and impairment losses decreased YoY. Affected by the RMB’s appreciation against the US dollar and the euro, the company incurred foreign exchange losses during the reporting period, and financial expenses increased YoY, partially offsetting the profit growth. In H1 This Year, Pr-Nd oxide Rose 22.42%; Dysprosium Oxide and Terbium Oxide Both Increased In 2026 H1, the rare earth oxide market went through a roller-coaster cycle of “sharp surge—plunge—repair—re-divergence.” Pr-Nd oxide saw the most dramatic price fluctuations, while dysprosium oxide and terbium oxide prices rose first, then fell, and then rebounded. Reviewing the H1 price trends of Pr-Nd oxide, dysprosium oxide, and terbium oxide shows that: The average price of Pr-Nd oxide on June 30 was 742,500 yuan/mt, up 136,000 yuan/mt from its average price of 606,500 yuan/mt on December 31, 2025, representing a H1 increase of 22.42%. Meanwhile, the semiannual daily average price of Pr-Nd oxide in H1 this year was 740,530.17 yuan/mt, up 309,577.18 yuan/mt YoY from its daily average of 430,952.99 yuan/mt in H1 2025, a YoY increase of 71.84%. The average price of dysprosium oxide on June 30 was 1,420 yuan/kg, up 80 yuan/kg from its average price of 1,340 yuan/kg on December 31, 2025, representing a H1 increase of 5.97%. However, comparing the daily average price of dysprosium oxide in H1 this year (1,394.09 yuan/kg) with the daily average in H1 2025 (1,660.26 yuan/kg) shows that its daily average in H1 this year fell 16.03% YoY. The average price of terbium oxide on June 30 was 6,475 yuan/kg, up 500 yuan/kg from its average price of 5,975 yuan/kg on December 31, 2025, representing a H1 increase of 8.37%. However, comparing the daily average price of terbium oxide in H1 this year (6,200.26 yuan/kg) with the daily average in H1 2025 (6,634.62 yuan/kg) shows that its daily average in H1 this year fell 6.55% YoY. Since entering August, the rare earth market has maintained a move sideways pattern amid a tug-of-war between upstream and downstream. At present, downstream enthusiasm for inquiries and purchases is not high, market inquiry activity remains relatively limited, and the overall trading atmosphere is sluggish, with rare earth prices continuing to diverge: the Pr-Nd market was affected by the continued pullback in futures prices, leading some suppliers to slightly lower their quotes; medium-heavy rare earth prices showed strong resilience and generally remained stable. In the short term, affected by the market stalemate, Pr-Nd product prices are expected to continue to move sideways within a narrow range. In the medium and long-term, SMM expects that overall supply of Pr-Nd oxide in 2026 will still have a tight underlying basis, but with new capacity in H2 gradually coming on stream, previously idle smelting and separation capacity plans to start up, and subsequent pressure for supply-side loosening may gradually emerge. On the demand side, rising toll processing orders at metal plants in Inner Mongolia will provide some rigid demand support for Pr-Nd oxide. As the traditional September-October peak season approaches, the market holds strong expectations for downstream restocking and stockpiling; end-use demand still has a considerable number of NEV orders awaiting concentrated release in H2. The industrial robot sector’s boom is expected to continue, and demand for rare earth permanent magnets is expected to post a notable increase YoY within the year. While emerging tracks such as humanoid robots and the low-altitude economy are developing rapidly and offer ample long-term growth potential, they are still in the early stage of industry cultivation, and their actual incremental contribution to rare earth permanent magnets remains limited for now. Whether expectations for peak-season demand will be fulfilled and the pace at which new capacity is released will become the key variables shaping the subsequent rare earth market. Voices From Different Parties A research report released by Datong Securities on August 11 noted that rare earth spot prices pulled back in the short term, and downstream magnetic material enterprises were relatively cautious in procurement. However, amid three supply constraints—tighter mining quotas, upgraded export controls, and production cuts in scrap recycling—together with restocking demand in markets outside China, the logic of strategic revaluation remained intact. Overall, policy controls and demand from emerging industries continued to jointly drive the minor metal sector, with the commodity and financial attributes of scarce resources reinforcing each other, and the valuation-repair rally still extending. A China Securities research report stated that, according to data from the General Administration of Customs, rare earth exports in July fell markedly while the average price rose. July rare earth exports totaled 4,223.5 mt, down 29.54% YoY and 17.26% MoM, the lowest single-month level since March; cumulative exports in January–July were 34,706.3 mt, down 10% YoY. Meanwhile, the corresponding average export price was $12.34/kg, surging 103.14% YoY. The export mix tilted toward higher-value medium-heavy rare earth products; markets outside China accepted higher-priced raw material, and the tight global rare earth supply-demand pattern persisted. On the supply side, there was no growth for the time being; production at separation enterprises remained stable, and enterprises that had halted production earlier had no plans to resume operations. Downstream rigid demand support was moderate, and long-term demand expectations were improving. Rare earth prices are expected to consolidate on a strong note in the near term. A Citic Securities research report indicated that, against the backdrop of constraints from indicators combined with declining imports, rigidness in rare earth supply continued to strengthen. Affected by tighter tax policy, the operating rate of scrap recycling enterprises remained persistently low. Industry chain rigid-demand restocking, together with the approaching peak season, is expected to drive demand to recover. Emerging fields such as robotics, the low-altitude economy, and industrial motors are expected to open up longer-term demand growth space. The rare earth industry’s supply-demand pattern may remain tight, and as price increases drive performance, interim results of rare earth industry chain companies are expected to beat expectations. It continued to recommend the strategic allocation value of the rare earth industry chain. Recommended Reading: To learn more fundamental, technical, and policy information on motor raw materials such as rare earths, copper, and aluminum, please participate in: ~

Grupo José de Mello has scrapped plans to invest €492 million ($566 million) in building a lithium hydroxide refinery in Estarreja, Portugal, dealing a fresh setback to the country's ambition of building a fully integrated domestic lithium mining and processing industry. The project, led by Lifthium Energy a subsidiary jointly held by the José de Mello Group and its chemical arm Bondalti had been designated a "Strategic Project" under the EU Critical Raw Materials Act only months before its cancellation, and had already secured €180 million in public support that was never drawn down. Group CEO Salvador de Mello confirmed the decision in an interview with Portuguese weekly Expresso, stating that despite "all the effort made to secure long-term contracts to allow investment in a factory, this was not possible," and that the company "will not proceed at this stage with an industrial investment in lithium." De Mello cited weak conditions across the European automotive and battery-lithium supply chain, noting the market "is not responding positively" to reindustrialization investments of this scale. Smelting background: Lifthium Energy was established in 2023 within Bondalti before ownership was restructured to 75% direct José de Mello Group control, with Bondalti retaining 15%. The Estarreja site was chosen because it already hosts existing Bondalti chemical processing infrastructure, theoretically reducing greenfield buildout risk. As designed, the refinery would have had capacity to produce 28,000 t/y of battery grade lithium hydroxide sufficient to supply roughly half a million EV battery packs annually and would have created 150 direct jobs. Critically, the plant was engineered around an electrolysis-based "green lithium" refining process using water and clean energy rather than conventional acid-roasting, and was explicitly designed to be feedstock-agnostic not dependent on ore from domestic Portuguese mines, meaning it could have processed imported spodumene concentrate from any origin. Production was originally targeted to start in 2030, later pulled forward toward 2027 in some interim guidance, before the project stalled entirely. Bondalti had already committed around €35 million to development work and had begun environmental licensing procedures for the plant as recently as June 2026. A parallel Lifthium refinery had also been under consideration in Torrelavega, Spain, which secured over €21 million in Spanish government support in September 2024; the Estarreja cancellation casts uncertainty over that project's fate as well. The Estarreja decision follows the November 2024 abandonment of Galp's Aurora lithium conversion project in Setúbal, after battery partner Northvolt's collapse left the project without an anchor customer. With both of Portugal's flagship downstream conversion projects now shelved, the country's refining ambitions have effectively stalled twice in under two years both times citing the identical root cause: an inability to lock in bankable, long-term offtake contracts with European automakers or battery cell producers, even with substantial public co-financing on offer. Mining background: Portugal's only advancing hard-rock lithium asset sits upstream of this collapsed conversion chain the Barroso Lithium Project, developed by London-listed Savannah Resources near the town of Boticas in northern Portugal. Savannah first took a 75% stake in the project in May 2017, when no resource estimate existed, and moved to 100% ownership by 2019. The company holds C-100 Mining Lease 5.42km², valid to 2036 plus the adjacent Aldeia Mining Lease of 2.74km², valid to 2049, and has since completed more than 50,000 metres of resource drilling. Barroso is now classified as Europe's largest known spodumene deposit, with a JORC-compliant resource of 39 Mt containing 411,900 tonnes of Li2O at an average grade of 1.05% Li2O across five orebodies, plus a notably low iron content (0.8% Fe2O3) that favours concentrate quality. Potential extension zones of a further 35-62 Mt are still being evaluated and could materially expand mine life if confirmed. The processing plant is designed to produce roughly 191,000-200,000 t/y of spodumene concentrate at 5.5% Li2O modestly below the 6% Li2O SC6 industry reference grade over a project life generating 2.6 Mt of concentrate in total, alongside by product sales of low-grade pegmatite material and ceramic quartz tailings for the local ceramics sector Portugal has a long standing history of lithium mining for the ceramics and glass industries, though never previously at battery-grade scale. Barroso has been designated a CRMA "Strategic Project" and received a non-reimbursable €110 million grant from the Portuguese state toward construction capex, with Savannah currently targeting production from 2028. Notably, most of the project's future concentrate output remains commercially unallocated, leaving room for a future offtake partner or open market sales. Development has not proceeded without friction. A court injunction triggered a three-week suspension of construction-related work in June 2026 before the Portuguese government stepped in, declaring the project of national and European significance and lifting the halt. Local opposition has centred on the Barroso region's UN FAO "Globally Important Agricultural Heritage System" designation the agricultural equivalent of UNESCO World Heritage status, recognizing the area's traditional polyculture farming and land management systems with community concerns focused on water use, biodiversity, and land access. Savannah has since signed benefit-sharing agreements with two of the three local "baldios" communally managed lands covering the mining concessions, and hundreds of protesters gathered at a camp in Covas do Barroso in early August 2026 to continue opposing the mine, with organisers explicitly linking their campaign to the Estarreja refinery's collapse as evidence the broader domestic lithium value-chain promise is unravelling. SMM View : The collapse of both Portuguese refinery projects leaves Barroso without a natural domestic home for its future spodumene concentrate, exposing the project to a structural offtake gap at the very market it was designed to serve. In the absence of a European buyer, output is more likely to flow into the broader seaborne market, with Asian converters standing out as the most probable destination a pattern consistent with the raw-concentrate export dynamic typically seen in early-stage African supply before local beneficiation capacity comes online. That two separate Portuguese conversion projects have now failed for the same stated reason an inability to secure bankable long-term offtake commitments points to persistently thin confirmed demand from Europe's battery and automotive supply chain, even where state co-financing is on the table. Barroso's progress toward its 2028 construction target, further resource-extension drilling results, and any offtake developments will be key signals for how EU-origin spodumene ultimately positions itself against African and Australian supply in the global concentrate market.

UN Economic Commission for Africa executive secretary Claver Gatete has called on the Southern African Development Community (SADC) to move from raw mineral exports toward local processing and value addition, calling the region a testing ground for Africa's broader mineral strategy. Demand for critical energy transition minerals including lithium could more than triple by 2030 under net-zero scenarios, with Africa holding about 30% of global reserves but just 1% of lithium output, the smallest share among minerals cited. Zimbabwe was named SADC's primary lithium resource holder, alongside the DRC (cobalt), South Africa (platinum, manganese) and Zambia (copper), with Gatete pointing to Zimbabwe's unprocessed lithium export ban as a policy model for the region. Minerals contribute about 10% of SADC's GDP, 25% of exports and 20% of government revenues, but only 7% of direct employment. SMM View: Gatete's remarks lend regional policy weight to Zimbabwe's ongoing beneficiation push, reinforcing the rationale behind its concentrate export ban as domestic sulfate capacity comes online.

Thursday, August 13, 2026 Following a brutal 30% decline in the price of gold since the start of the year, there are signs the yellow metal is coming back to life with the bullion price up 8% since the beginning of August. The more volatile silver price is up around 16% since the middle of July. The sharp pullback at the start of the year should perhaps not have come as much of a surprise given gold had gained 60% in 2025 and another 30% in January 2026. A contributing factor to recent strength of gold and silver has been renewed weakness in the US dollar against a basket of major currencies in recent weeks. A weaker dollar makes precious metals cheaper for non-dollar buyers. It is the mirror image of the dollar strength which contributed to gold weakness in early 2026. Dollar strength was exacerbated by expectations for central banks to hike interest rates following the US-Iran war in late February as higher energy prices fed through to higher inflation. Since gold does not provide a yield, rising interest rates make gold less attractive compared to stocks and bonds , everything else being equal. Renewed Central Bank buying According to The World Gold Council (WGC), central banks and sovereign wealth funds purchased 289 tonnes of gold in the second quarter of 2026, up 62% year-over-year. Poland was the largest buyer, followed by China, which bought its largest quarterly addition since 2023, taking its reported holdings to 2,346 tonnes. Looking ahead, the WGC’s annual survey found 89% of central bank reserve managers expect central bank holdings to keep rising over the next 12-months, sending a message that demand remains in an upward trend. A separate survey across 76 institutions pointed to structural changes in how reserves were managed, with more than half of central banks running domestic purchase programmes which involved governments buying gold from smaller-scale gold miners within their own country. The WGC describes this as a shift away from holding gold as a legacy asset towards treating gold as an active, strategic allocation amid geopolitical uncertainty, rising currency volatility and reserve diversification . Gold as a hedge Kevin Smith, chief investment officer at Crescat Capital believes there is a scenario where gold could rise to $20,000 per ounce over the next few years. It is a long shot, but not unprecedented. One of Smiths arguments is that the gold price relative to the S&P 500 index is as low as it has been since 2009 and 1970, which reflects the fact that US valuations are at all-time highs, implying there is a small margin of error priced into investor's expectations. Prior peaks in the gold to S&P 500 ratio have coincided with market dislocations. In the current set up, Smith is looking at a scenario where the AI boom doesn’t provide the expected investment returns, leading to disappointment which could cause the stock market to drop in similar fashion to the declines seen in 2001 and 2008, when the S&P 500 halved in value. “A 50% lower S&P 500, combined with a 5.25 gold-to-S&P 500 multiple, which is well below its 1980 peak of 7.58, though slightly above its 1933 peak of 4.76, also gets us to our $20,000 price target for gold,” argues Smith. All bets are off if interest rates stay higher for longer With Federal Reserve chair Kevin Walsh seemingly intent on establishing his inflation-fighting credentials, central banks could hike interest rates to bring inflation back to target, after missing it for more than four years. This would create a headwind for precious metals, which tend to do better in low interest rate environments. Despite these concerns, markets are also cognisant of the other side of the Fed’s dual mandate, which is to keep the economy chugging along and the labour market healthy. The bull market in US stocks means households have a greater proportion of their wealth tied to stocks than ever before, while the national US debt relative to the size of the economy is forecast by the Congressional Budget Office to climb to its highest level since the second world war over the next decade. These factors suggest the central bank will not act hastily to risk failing to meet the other side of its mandate.