On March 18, the Chairman of Chery Automobile stated that Chery's solid-state battery pilot production line has developed cells with different energy density levels and is currently conducting extensive rigorous testing. Chery's future investment in all-solid-state batteries will have no upper limit. It is reported that Chery's Rhino Battery S series includes a 60Ah, 400Wh/kg solid-state battery utilizing a sulfide-based solid electrolyte system and high-nickel ternary cathode materials; and a 600Wh/kg solid-state battery using an in-situ polymerization solid electrolyte system and lithium-rich manganese-based cathode materials, achieving a range of over 1500+ km.

On March 10, GEM Co., Ltd. disclosed during an investor exchange event that the company has been strategically positioned in the solid-state battery field for some time. Since 2019, it has been developing high-nickel ternary cathode materials and lithium-rich manganese-based cathode materials specifically for solid-state batteries. Currently, shipments of these material systems have reached ton-level quantities.

[Ford Motor: Temporary Production Halt at Some Plants Due to Rare Earth Supply Deficit] Ford Motor CEO Jim Farley stated that the company is still facing a supply deficit of rare earths, leading to temporary production halts at some plants. He revealed that after China implemented a new export approval mechanism, the supply of relevant materials has slowed down significantly, and the current situation is challenging. Ford's Explorer SUV plant in Chicago halted production for a week last month due to a shortage of raw materials. Although there has been positive news from the US-China trade negotiations, Farley noted that there has been no significant improvement in the supply of rare earths so far. He also mentioned that the company has submitted multiple export license applications to China's Ministry of Commerce, which are currently being reviewed one by one. (Gelonghui) [Yahua Group: Plans to Integrate Lithium Business Equity and Transfer It to Yahua Lithium Group] Yahua Group (002497.SZ) announced that to promote the rapid development of its lithium business, it plans to use its wholly-owned subsidiary, Sichuan Yahua Lithium Technology Co., Ltd., as a platform, rename it "Yahua Lithium Group," and transfer the equity of five subsidiaries involved in the lithium business to Yahua Lithium Group without compensation. (Cailian Press) [XTC New Energy Materials (Xiamen): Sales of New Energy Material Products Increased by Approximately 20.95% YoY from January to May] XTC New Energy Materials (Xiamen) (688778.SH) announced that from January to May 2025, the company's new energy material products achieved sales of approximately 47,600 mt, up approximately 20.95% YoY. Among them, LCO sales were approximately 22,300 mt, up approximately 53% YoY, and sales of ternary cathode materials (including LFP and others) were 23,600 mt, up approximately 2% YoY. (Cailian Press) [US Retail Sales in May Record Largest Decline Since the Beginning of the Year] US retail sales in May recorded the largest decline since the beginning of the year, indicating that new tariffs have curbed consumer spending, particularly on automobiles. Data released by the US Department of Commerce on Tuesday showed that after April's data was revised to a 0.1% decline, retail sales in May, unadjusted for inflation, fell by 0.9% MoM. Retail sales excluding automobiles declined by 0.3%. (Cailian Press) [Baoneng Auto Denies Being Liquidated and Dissolved] Baoneng Auto's customer service center WeChat official account issued a statement claiming that recently, some media have distorted facts and maliciously reported that the company and its affiliates have issued dissolution and liquidation announcements, disrupting online order and infringing on the company's legitimate reputation. 1. Although some companies are shown on the National Enterprise Credit Information Publicity System as "the enterprise has issued a dissolution announcement," "the enterprise has filed for liquidation group registration," or "the enterprise is making a business license invalidity declaration," among others, the company's operations remain normal, and new vehicles are expected to be launched soon. 2. Although some senior executives such as directors and supervisors have resigned, it does not affect the company's normal operations and business, and all operations are proceeding as usual without any impact. 3. Please refer to the group's official website for all business information and updates. (Cailian Press) [Xiaomi Auto: No Official Bulk Order Channels or Cash Subsidies Currently Available] Xiaomi Auto stated in its latest Q&A session with netizens on the evening of June 16 that there are currently no official bulk order channels or cash subsidies for Xiaomi Auto. The public is advised not to believe such information or engage in monetary transactions to avoid financial losses. For similar sales-related information, please carefully verify and refer only to official Xiaomi Auto channels. (Cailian Press) Related Reading: Major News in the Auto Market! May Passenger Vehicle Retail and Production Hit Record Highs—Is the Price War Sustainable? [SMM Analysis] Three Questions to Instantly Understand ESS [SMM Analysis] Official HS Codes for Black Mass Imports/Exports—How Will It Impact Domestic Lithium Battery Recycling Firms? [SMM Analysis] Automakers Cut Payment Terms to 60 Days—A Major Shift in the Auto Supply Chain [SMM Analysis] Breakthrough in Portugal’s Lithium Mine Project—Europe’s Largest Spodumene Deposit Enters Fast-Track Development Weekly Summary of the LFP Market in June [SMM Lithium Battery Market Analysis] [SMM Analysis] Behind the 60-Day Payment Promise—Suppliers’ Bittersweet Expectations Cobalt Product Prices Continue to Fall—Co3O4 Drops $7,650 in a Single Week—Will the Decline Stop Next Week? [Weekly Review] [SMM Analysis] Rio Tinto Partners with Codelco to Enter Lithium Triangle—$900 Million Investment in World-Class Salt Lake Project [SMM Analysis] Separator Prices Remain Stable [SMM Analysis] Raw Material Drags Prices Down—Policy Window May Trigger a Rebound Battery and Solid-State Battery Sectors Rally Again—Multiple Automakers Announce Latest Progress—Lopal Shares Surge Nearly 6% [Hot Stocks] [SMM Analysis] May Cathode Material Production Rises MoM—Weak End-Use Demand Growth [SMM Analysis] Rising Demand—May Anode Material Production Increases [SMM Analysis] May Co3O4 Production Rises MoM—Industry Adopts Cautious Wait-and-See Approach Cobalt Product Prices Fall Across the Board—Cobalt Chloride Smelter Quotes Hold Firm—Will High Volatility Continue? [Weekly Review] [SMM Analysis] US Tariffs on China—Impact on ESS Cell Export Routes and Pricing (Part 1: Direct from China, Malaysia Transshipment, US Production) [SMM Analysis] US Tariffs on China—Impact on ESS Cell Export Routes and Pricing (Part 2: Direct from China, Malaysia Transshipment, US Production) [SMM Analysis] US Tariffs on China—Impact on ESS Cell Export Routes and Pricing (Part 3: Direct from China, Malaysia Transshipment, US Production) [SMM Analysis] New Breakthrough in Lithium Battery Tech—Can an Injection Extend Battery Life?

Nickel prices remained weak, with SHFE nickel futures fluctuating downward. The most-traded contract closed 0.92% lower at 118,570 yuan/mt. The prices of laterite ore from the Philippines remained firm at the ore end, but high-priced ore continued to squeeze the profits of mid- and downstream products, leading to a certain deviation between the trends of nickel ore and the futures market. Nickel prices have continued to weaken recently, approaching the cost of pyrometallurgy and compressing the profits of nickel enterprises. However, there have been no large-scale production cuts by enterprises so far, and the supply surplus situation has not significantly eased. The nickel ore market has been relatively quiet, with ore prices remaining stable. It is expected that nickel ore resources for July will start to be sold this week. In the Philippines, mines are mostly adopting a wait-and-see attitude and are cautious in quoting prices. Some downstream iron plants have entered the raw material procurement and stockpiling period, but due to profit losses, they are not highly willing to accept excessively high nickel ore prices. In Indonesia, the shortage of nickel ore supply persists, with declining ore grades and high prices for high-grade ore remaining. The domestic trade benchmark price for June (Phase II) is expected to fall by approximately $0.3-0.5. The current domestic trade premium remains at 26-28, and subsequent premiums will enter a negotiation period. The end-use demand for new energy is in the off-season, with production schedules for ternary cathode materials in June declining. Battery manufacturers have previously stockpiled sufficient raw materials, resulting in low procurement demand. Nickel sulphate prices have remained firm, maintaining a relatively high level. The tight supply situation for intermediate products at the raw material end continues, with intermediate product prices remaining firm. However, with some nickel iron production lines currently switching to produce nickel matte, the tight supply situation for intermediate products may improve, putting pressure on further nickel sulphate price increases. Downstream ternary cathode manufacturers are not highly willing to accept high-priced nickel sulphate, and with demand remaining weak, nickel sulphate continues to face pressure. In the short term, supported by nickel sulphate costs, industrial profits remain low, and prices are maintained at cost-based pricing levels. Regarding the outlook, Jinrui Futures commented that with the resource end being suppressed by stainless steel, the driving force for cost increases in Class 1 nickel has weakened. Meanwhile, as Indonesia's supply-side policies have become more stable, the sustainability of additional support for Class 1 nickel demand in H2 is in question. The driving force for nickel price increases has weakened, while there is still cost support on the downside. Anchoring on the cost of pyrometallurgical electrodeposited nickel, the price range may converge.

SMM Cobalt Morning Meeting Summary: This week, the spot price of refined cobalt maintained a fluctuating trend. On the supply side, due to the slightly lower economic efficiency of refined cobalt production, the operating rate of smelters remained low, resulting in a slight decline in the supply of refined cobalt. On the demand side, influenced by the policy-related news from the DRC, some smelters and traders reported an increased willingness of downstream producers to inquire about prices. However, currently, most buyers and sellers are still in the negotiation stage, and overall market transactions remain weak. It is expected that before the official implementation of the policy, the spot price of refined cobalt will likely continue to fluctuate.

This week, the prices of ternary cathode material continued to decline. In terms of raw material costs, the price of cobalt sulphate continued to drop slightly, while the prices of nickel sulphate and manganese sulphate remained stable for the time being. Lithium carbonate rebounded to a certain extent due to macro sentiment, while the price of lithium hydroxide still showed a clear downward trend.

This week, the prices of ternary cathode materials continued to decline. On the raw material cost side, nickel sulphate, cobalt sulphate, and manganese sulphate all showed a slight downward trend, while the prices of lithium carbonate and lithium hydroxide had not yet hit bottom and continued to face downward pressure.

[SMM Analysis: Cathode Material Production Increased MoM in May, While Downstream End-use Demand Growth Remained Sluggish] SMM reported on June 4: In May, total lithium carbonate production decreased by 2% MoM but increased by 15% YoY; lithium hydroxide production remained largely stable MoM but decreased by over 20% YoY; cobalt sulphate production decreased by 13% MoM; Co3O4 production increased slightly both MoM and YoY; ternary cathode precursor production decreased by 3.99% MoM but increased by 4.53% YoY; ternary cathode material production increased by 3.52% MoM and 23.91% YoY; the iron phosphate market remained stable, with production increasing by 2% MoM and 38% YoY; LFP production increased by approximately 6.7% MoM and 43% YoY; LCO production increased by 6% MoM.

[6.4 Lithium Battery News] ►Five departments, including the Ministry of Commerce, organized the 2025 New Energy Vehicle (NEV) Rural Promotion Campaign ►All-China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce Initiative: Resolutely Resist "Cut-Throat Competition" Primarily in the Form of "Price Wars" ►Asia-Pacific Mechanical & Electrical Co., Ltd.: Received NEV Designation Notification ►NIO: Gross Margin Expected to Increase by Over 20% in Q4 This Year ►BYD: Sold 382,500 NEVs in May ►Del Corporation: Plans to Invest 300 Million Yuan in the Construction of a New-Type Lithium Battery Pilot and Industrialisation Project, as Well as an Intelligent Motor Industrialisation Project

[CITIC Securities: Adjusts Forecasted Lithium Price Range to 60,000-70,000 yuan/mt in H2 2025] CITIC Securities' research report indicates that the slowdown in lithium price declines in Q1 2025 led to a slight recovery in overseas lithium ore prices and improved operations at salt lake enterprises, while supply-side exits remained sluggish. Since Q2, as lithium prices fell to 60,000 yuan/mt, industry losses significantly widened, fueling expectations of mine production cuts and a price rebound. However, cost reduction efforts and market share retention objectives have resulted in smaller-than-expected output reductions, suggesting lithium prices will undergo a challenging bottoming process. The forecasted lithium price range for H2 2025 has been adjusted to 60,000-70,000 yuan/mt, with attention recommended on low-cost players likely to benefit from a potential rebound. (Cailian Press) [MIIT and CAAM Address New Round of Automaker Price Wars: "Cut-throat Competition" Has No Winners or Future] On May 31, responding to the recent wave of price wars in the auto industry, CAAM issued the "Proposal on Maintaining Fair Competition and Promoting Healthy Industry Development" (hereinafter referred to as the "Proposal"). Following its release, an MIIT official expressed support for CAAM's Proposal. Price wars among automakers have severely disrupted normal operations, jeopardizing the industry's healthy and sustainable growth. 》Click for details [Lopal Tech Signs 5 Billion yuan LFP Cathode Material Sales Contract with Eve Energy Malaysia Sdn. Bhd.] Lopal Tech (603906.SH) announced that its subsidiary, Lithium Source (Asia Pacific), signed a Production Pricing Agreement with Eve Energy Malaysia Sdn. Bhd., projecting sales of 152,000 mt of LFP cathode materials to Eve Energy and its affiliates from 2026 to 2030, with total contract value exceeding 5 billion yuan. (Cailian Press) 》Click for details [Tibet Mineral Resources Reduces Listing Price by 10% for Second Attempt at Silver Zabuye Equity Transfer] Tibet Mineral Resources (000762.SZ) disclosed that on October 23, 2024, it approved a public listing transfer of 100% equity in Silver Zabuye Lithium Industry, with an initial listing price of 196.5793 million yuan. After failing to identify qualified buyers, the company lowered the price by 10% to 176.9214 million yuan for a second round of listing via the Shanghai United Assets and Equity Exchange. (Cailian Press) [Yongxing Materials: Currently Not Selling Lepidolite Concentrate] Yongxing Materials stated via an interactive platform that it is not currently selling lepidolite concentrate externally, and future sales decisions will be based on comprehensive market assessments. [EVE: The company plans to achieve breakthroughs in the production process of all-solid-state batteries by 2026] EVE stated on an interactive platform that it has already made technological arrangements in the field of solid-state batteries and formulated relevant industrial plans. In the consumer battery sector, the company's gel-state battery solution has been applied to atomizer products, aiming to achieve "food-grade safety." In the power and ESS battery sectors, the company is committed to significantly enhancing battery energy density, safety, and cycle life to drive the rapid development of fields such as EVs and ESS. Currently, the company has completed the development of Ah-level pouch-type sulphide all-solid-state battery samples, and its 100 MWh pilot line is expected to commence operations in 2025. The company plans to achieve breakthroughs in the production process of all-solid-state batteries by 2026, introducing a high-power, highly environmentally resilient, and absolutely safe all-solid-state battery, primarily for use in hybrid power applications. In 2028, it will launch a 400 Wh/kg high-specific-energy all-solid-state battery. (Financial Associated Press) Related Readings: Quotations for cobalt-based products collectively "fall," while cobalt chloride smelters maintain firm quotes, with prices potentially fluctuating at high levels in the future? [Weekly Observation] [SMM Analysis] Impact of US Tariffs on China on Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Approaches: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part I) [SMM Analysis] Impact of US Tariffs on China on Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Approaches: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part II) [SMM Analysis] Impact of US Tariffs on China on Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Approaches: "Direct Export from China, Re-export via Malaysia, and US Domestic Production" (Part III) [SMM Analysis] New Breakthrough in Lithium Battery Technology: Can a Single Injection Extend Battery Life? [SMM Analysis] Lithium Battery Recycling Procurement Continues to Decline in May, Potentially the Sluggiest of the Year [SMM Analysis] Ternary Cathode Material Production Increased by 3.52% MoM in May [SMM Analysis] Ternary Cathode Precursor Production Decreased by 3.99% MoM in May Summary of China's LFP Market in May and Outlook for June [SMM Lithium Battery Market Analysis] [SMM Analysis] SMM's Total Domestic Lithium Carbonate Production in May Decreased by 2% MoM but Increased by 15% YoY [SMM Analysis] Lithium Hydroxide Production in May Remained Steady with a Slightly Stronger Trend, with the Flat Trend Expected to Continue in June [SMM Analysis] Ternary Cathode Precursor Production Decreased by 3.99% MoM in May [SMM Analysis] Supply and Demand for Iron Phosphate Remained Stable in May, with Potential Price Adjustments in June Amid Efforts to Boost Sales Volume [SMM Analysis] Grenergy to Invest 3.5 Billion Euros in BESS Solar and Energy Storage by 2027 It has officially fallen below 60,000 yuan/mt!Lithium Carbonate Futures Hit New All-Time Lows: When Will Prices Bottom Out? [SMM Flash News] Automobile and Parts Sectors Surge, Parts Sector Sees a Wave of "Limit-Up" Trading with Nearly 10 Stocks Hitting Daily Limit [Hot Stocks] [SMM Analysis] REPT Battero and Hyosung Heavy Industries Reach 2.5 GWh ESS Strategic Cooperation Agreement [SMM Weekly Review] Weekly Market Trends for Lithium Ore from 5.26 to 5.29 [SMM Weekly Review] Lithium Carbonate Market Remains Weak, with Prices Continuing to Decline Due to Supply-Demand Imbalance and Weakening Costs [SMM Weekly Review] Weekly Market Trends for Lithium Hydroxide from 5.26 to 5.29 This Week, Negative Electrode Raw Material Coke Prices Show a Downward Trend Due to Demand [SMM Weekly Review of Lithium Battery Negative Electrode Raw Material Market] This Week, Graphitisation Tolling Service Prices Experience a Slight Decline [SMM Weekly Review of Lithium Battery Graphite Market] This Week, Negative Electrode Material Prices Are in a State of Flux [SMM Weekly Review of Lithium Battery Negative Electrode Market] Ternary Cathode Precursor Market Remains Weak [SMM Weekly Review of Ternary Cathode Precursor Market] Market Sentiment for Ternary Cathode Materials Is Poor [SMM Weekly Review of Ternary Cathode Material Market] Spot Prices for Cobalt Intermediate Products Show a Slight Weakening [SMM Weekly Review of Cobalt Intermediate Product Market] [SMM Weekly Review of Power Battery Cell Market on 5.29] Auto Sales Show Some Weakness, with No Upward Expectations for Battery Cell Prices Weekly Summary of LFP Material Market [SMM Weekly Review of Lithium Battery Market] [SMM Analysis] Domestic Lithium Carbonate Imports for April 2025 Released