According to the U.S. Patent and Trademark Office on the 30th, Samsung SDI has filed for and is in the process of securing a patent for a composite anode material. The patent, titled “Composite anode active material and anode and lithium secondary battery including the same,” was originally filed on July 10, 2020, and was published on March 24. It covers an anode material combining graphite with an average particle size (D50) of approximately 18μm or larger, graphite of around 10μm or larger, and a silicon-carbon composite. The technology focuses on enhancing structural stability and extending battery lifespan by densely filling the electrode with graphite particles of different sizes.

Recently, Hyundai Motor Group signed a cooperation agreement with Zhejiang Huayou Recycling Technology Co., Ltd. to jointly build an EV power battery recycling system in Indonesia. The cooperation covers the recycling and reuse of battery production scrap and end-of-life batteries, aiming to achieve a closed-loop resource system across the entire battery life cycle. Background of the Cooperation As the world’s largest nickel producer, Indonesia is pushing with unprecedented determination to transform itself from a raw material exporter into a global EV battery manufacturing hub. According to the Indonesian government’s plan, by 2030 the country will achieve total EV battery capacity of 100 GWh and plan to produce about 600,000 pure EVs annually. The HLI Green Power battery plant, jointly established in Indonesia by Hyundai Motor Group and LG Energy Solution, is a key part of this strategy. Located in Karawang, West Java, the plant has a total investment of $1.1 billion and began operations in 2024. It has annual capacity of 10 GWh and can supply battery cells for more than 150,000 EVs. The plant mainly supports EV models of Hyundai Motor Group in Southeast Asia, India, and other markets. However, with the rapid expansion of battery capacity, the disposal of end-of-life batteries and manufacturing scrap has become an increasingly prominent issue. The Indonesia Battery Association forecasts that by 2030 the country’s end-of-life power batteries will reach 120,000 mt. But the existing recycling system has clear shortcomings: insufficient processing capacity, lack of technical standards, and more than 70% of processing handled through informal recycling channels. In the suburbs of Jakarta, multiple open-air acid-leaching lithium workshops have even emerged, causing soil heavy metal levels to exceed EU limits by 50 times. This cooperation carries multiple implications for the development of Indonesia’s battery industry and even that of Southeast Asia as a whole: Improving the Local Industry Chain: Through the New Energy Law, the Indonesian government has designated EVs as a national strategic industry and requires foreign automakers to commit to building battery plants in Indonesia, with 40% local sourcing of parts to be achieved by 2027. The cooperation between Hyundai Motor and Huayou Recycling helps Indonesia build a complete industry chain spanning mineral extraction, battery manufacturing, and recycling. Addressing Resource Challenges: Although Indonesia is rich in nickel resources, it produces almost no cobalt, and its lithium resources depend on imports from Australia. Through battery recycling, it can partially reduce its import dependence on critical minerals and improve resource security. Attracting More Investment: The Indonesian government has introduced fiscal incentives such as zero import tariffs, exemption from luxury sales tax, and a reduction in VAT from 11% to 1%, to attract foreign investment into the battery industry. The battery recycling cooperation in Indonesia between Hyundai Motor Group and Huayou Recycling is not only a commercial move by the two enterprises, but also a reflection of the global battery industry's transition toward a circular economy. With the rapid expansion of the EV market, battery recycling has shifted from an environmental protection issue to a matter of resource strategy and economics.

On November 14 2025, Malaysia launched the region’s first electric vehicle (EV) battery passport standard, MS 2018 Similar to initiatives under the European DDP for battery industry, MS 2818 will serve as a digital record of the EV battery lifecycle, from production to disposal. It is intended to support transparency, sustainability, and traceability across the entire EV supply chain.

[Hyundai Motor Group and Huayou Cobalt Jointly Built a Power Battery Recycling System in Indonesia] Recently, Hyundai Motor Group signed a cooperation agreement with Zhejiang Huayou Recycling Technology Co., Ltd. (a subsidiary of Huayou Cobalt) to jointly build an EV power battery recycling system in Indonesia. The cooperation covered the recycling and utilization of battery production scrap and end-of-life batteries, aiming to achieve a closed-loop resource system throughout the entire battery life cycle.

On March 11, 2026, Fuzhou Public Transport Group, the largest public transportation operator in Fujian Province by scale, signed a strategic cooperation framework agreement with CATL in Ningde, Fujian. The two parties will join hands to explore new development paths for the second half of the public transport electrification journey. This cooperation will focus on four core areas: bus battery aftermarket services, urban battery swap network construction, battery recycling and utilization, and vehicle-to-grid (V2G) technology. Addressing the challenges of charging efficiency and battery life following the large-scale deployment of electric buses will be a key focus of the collaboration between the two parties.

In mid-February 2026, CAAM and the China Automotive Power Battery Industry Innovation Alliance successively released relevant data on the auto and power battery markets for January 2026. According to CAAM’s analysis, in January 2026, the auto industry overall operated steadily, the passenger vehicle market declined somewhat, the commercial vehicle market continued its positive trend, the NEV market remained stable, and auto exports continued to grow....... SMM compiled the relevant data on the auto market and power battery market for January 2026 for readers’ reference. Automobiles CAAM: In January 2026, Auto Production and Sales Both Exceeded 2 Million Units, Production Edged Up YoY In January, auto production and sales totaled 2.45 million and 2.346 million units, respectively, with production up 0.01% YoY , while sales fell 3.2% YoY, down 25.7% and 28.3% MoM, respectively. CAAM: In January 2026, China’s NEV Production and Sales Reached 1.041 Million and 945,000 Units, Respectively, up 2.5% and 0.1% YoY In January, NEV production and sales reached 1.041 million and 945,000 units, respectively, up 2.5% and 0.1% YoY, respectively , with NEV sales accounting for 40.3% of total new vehicle sales. CAAM: Auto Exports Continued to Grow in January, NEV Exports Posted Rapid Growth In January, auto exports reached 681,000 units, up 44.9% YoY , down 9.5% MoM . NEV exports reached 302,000 units, up 100% YoY and 0.5% MoM ; traditional fuel vehicle exports reached 380,000 units, up 18.8% YoY , down 16.1% MoM. Regarding the auto market in January, CAAM said that the auto industry overall operated steadily in January, the passenger vehicle market declined somewhat, the commercial vehicle market continued its positive trend, the NEV market remained stable, and auto exports continued to grow. The main factors behind the market decline were: first, the transition and adjustment of the NEV purchase tax policy; second, car purchase subsidy policies in many regions were at the turn of the year; and third, some consumer demand was released ahead of schedule in 2025. In the first month of 2026, the country intensively introduced a series of policies benefiting both households and businesses to support livelihoods and economic development. Among them, the program of large-scale equipment upgrades and consumer goods trade-ins was smoothly and orderly carried forward, with various localities successively following up and issuing implementation details; the Work Plan for Accelerating the Cultivation of New Growth Drivers in Service Consumption focused on key areas such as automotive aftermarket services, stimulating market vitality. As relevant policies are further refined and implemented, this will help stabilize and rebound demand in the auto market and support the industry's steady operation. CAAM stated that the 15th Five-Year Plan period is a critical window for China's automotive industry to transition toward high-quality development, requiring the industry to improve quality and efficiency while maintaining stable market operations. Meanwhile, the CPCA also released January passenger vehicle market data. January retail sales in China's passenger vehicle market totaled 1.544 million units, down 13.9% YoY. Due to the complex market factors at play, the pattern of weaker sales in the first half and stronger sales in the second half has become more pronounced in recent years. Since 2020, low YoY retail growth in January has been relatively common, for example, -21% in 2020, 27% in 2021, -5% in 2022, -38% in 2023, 58% in 2024, and -12% in 2025. Therefore, the -13.9% reading in 2026 was a mid-range outcome amid the wild swings in January growth rates over the years. NEV side, January retail sales in the passenger NEV market were 596,000 units, down 20.0% YoY; January retail sales of conventional internal combustion engine passenger vehicles were 948,000 units, down 10% YoY. Export side, January passenger NEV exports reached 286,000 units, up 103.6% YoY . This accounted for 49.6% of passenger vehicle exports, up 12.5 percentage points compared to the same period last year. Of this, pure EVs accounted for 65% of NEV exports (67% in the same period last year), while A00+A0-class pure EVs, the core focus segment, accounted for 50% of pure EV exports (41% in the same period last year). As China's scale advantages in NEVs emerge and market expansion demand grows, more and more China-made new energy brands are going global, with their recognition outside China continuing to rise. Plug-in hybrids accounted for 33% of NEV exports (32% in the same period last year). Although they have recently faced some disruptions from external countries, exports of self-owned plug-in hybrids to developing countries have been growing rapidly, with bright prospects ahead. The CPCA stated that after the NEV purchase tax exemption policy, implemented since September 2014, officially ended at month-end December 2025, the NEV market entered a normal recovery period. Some consumers brought purchases forward to enjoy the policy dividend in December last year, resulting in a certain pull-forward effect in January. This was an expected short-term fluctuation and does not represent the market's long-term trend. Specifically, the characteristics of the January passenger vehicle market were as follows: First, January passenger vehicle producer exports hit a record high for the month, and passenger NEV exports also reached a historic January high, fully demonstrating the rising competitiveness of China's automotive industry in the global market and continued robust demand outside China; second, the retail pullback after the expiration of the vehicle purchase tax exemption was evident, while the share of high-end NEVs rose significantly, reflecting growing consumer demand for high-quality NEVs amid the consumption upgrade trend, which will help drive the industry's transition toward high-quality development; third, new vehicle launches in 2026 were steady, and with anti-involution efforts curbing disorderly price cuts, January NEV sales promotions remained at 10.1%, staying around 10% for five consecutive months. There was no vicious volume discount competition, which helped maintain market order; fourth, the historical pattern of internal combustion engine vehicles outperforming NEVs ahead of Chinese New Year continued again. In January, retail sales of internal combustion engine vehicles in China fell 10% YoY, pure EV retail sales fell 17.0% YoY, range-extended vehicles rose 0.8% YoY, and plug-in hybrids fell 31.2% YoY. As the pull-forward effect from last December weakens in the future, the NEV market is expected to return to a positive growth track; fifth, in January, the penetration rate of NEV retail sales in China was 38.6%, and the export penetration rate was 49.6%; sixth, in January 2026, exports of self-owned internal combustion engine passenger vehicles were 250,000 units, up 17% YoY, while self-owned NEV exports were 226,000 units, up 115% YoY. NEVs accounted for 47.5% of self-owned exports. In particular, the high growth of NEV exports in Europe and Southeast Asia marked the expanding influence of Chinese NEV brands in the international market, laying a solid foundation for future export growth. Power battery In January, China’s cumulative sales of power and ESS batteries reached 148.8 Gwh, up 85.1% YoY In January, China’s sales of power and ESS batteries totaled 148.8 Gwh, down 25.4% MoM , up 85.1% YoY . Of this, power battery sales were 102.7 Gwh, accounting for 69.0% of total sales, down 28.6% MoM and up 63.2% YoY; ESS battery sales were 46.1 Gwh, accounting for 31.0% of total sales, down 17.0% MoM and up 164.0% YoY. In January, China’s combined exports of power and ESS batteries were 24.1 Gwh, down 26.0% MoM and up 38.3% YoY , accounting for 16.2% of sales in the month. Of this, power battery exports were 17.7 Gwh, accounting for 73.3% of total exports, down 7.1% MoM and up 59.3% YoY; ESS battery exports were 6.4 Gwh, accounting for 26.7% of total exports, down 52.6% MoM and up 1.4% YoY. In January, China’s cumulative domestic power battery installations reached 42 Gwh, up 8.4% YoY In January, domestic power battery installations were 42 Gwh, down 57.2% MoM , up 8.4% YoY . Of this, ternary battery installations were 9.4 Gwh, accounting for 22.3% of total installations, down 48.6% MoM and up 9.6% YoY; LFP battery installations were 32.7 Gwh, accounting for 77.7% of total installations, down 59.1% MoM and up 8.1% YoY. In January, the performance of emerging automakers diverged in terms of YoY growth, with Leap Motor continuing to “lead the pack” and Xiaomi Auto’s January deliveries surpassing 39,000 units Statistics compiled by a CLS reporter on the January sales of 15 A/H-share listed automakers showed that 9 automakers achieved YoY growth, accounting for 60%. Higher NEV sales and expansion into overseas markets became important drivers supporting the overall growth of these automakers. SAIC’s January sales reached 327,000 units, up 23.94% YoY, returning to the top spot in sales. Its NEV segment continued to gain momentum. In January 2026, SAIC sold 85,000 NEVs, up 39.7% YoY, with sales volume ranking among the industry leaders. As for second-ranked Geely, its January sales reached 270,200 units, up 1.29% YoY and up 14.08% MoM, making it the only enterprise to achieve positive growth both YoY and MoM. Geely Automobile said, “2026 will be a major product year for Geely Automobile. The company will launch 1-2 brand-new products each quarter, covering multiple new hybrid car models and a new generation of methanol-hydrogen energy car models, in a full push toward its annual sales target of 3.45 million units.” On exports, Geely set its 2026 export sales target at 640,000 units, up more than 50% YoY. As for the NEV startup market in January, judging from the January delivery volumes released by major automakers, all major automakers saw delivery declines of varying degrees MoM versus December 2025. Among them, Leap Motor continued to lead in 2026, ranking first among NEV startups with deliveries of 32,059 units, up 27.37% YoY and down 46.94% MoM. To stabilize the market, Leap Motor accelerated channel development, recently adding 85 stores. As of January 5, its total number of stores nationwide reached 1,068, ensuring that more users could conveniently experience Leap Motor’s products and services. On February 2, Leap Motor announced new car purchase benefits for February: a New Year cash gift of 11,000 yuan in cash discounts, a New Year loyalty gift of up to 10,000 energy points, and a New Year financing gift of up to five years of zero interest. Li Auto regained momentum in January, ranking just behind Leap Motor with 27,668 units, down 7.55% YoY and down 37.47% MoM. As of January 31, 2026, Li Auto’s cumulative historical deliveries reached 1,567,883 units. On February 5, Li Auto Chairman Li Xiang said on a social media platform that Li Auto would launch the all-new Li L9 in 2026, “not just a car, but also a pioneering work of an embodied AI robot.” Cailian Press reporters learned that Li Auto had established an AI company organizational structure for this purpose, including teams for computing power and data, foundation models, and software and hardware bodies, to build system capabilities for “creating silicon-based humans.” As of January 31, 2026, Li Auto had 547 retail centers nationwide, covering 159 cities, as well as 547 after-sales repair centers and authorized service centers, covering 221 cities. Li Auto had put into use 3,966 Li Auto supercharging stations nationwide, with 21,945 charging piles. NIO delivered a total of 27,182 units in January, up 96.08% YoY and down 43.53% MoM. On the afternoon of February 1, NIO completed delivery of the 60,000th all-new ES8 in Guangzhou, taking 134 days. On the same day, the NIO brand launched seven-year ultra-low-interest car purchase plans for the new ET5, ET5T, ES6, and EC6, while the ONVO brand launched the same for the ONVO L60 and L90, featuring a 0.49% annualized rate for seven years, zero financial service fees, and zero penalties for early repayment. The firefly brand launched a seven-year ultra-low-interest car purchase plan, with buyers who place orders receiving a Year of the Horse Chinese New Year Adventure Gift Pack. XPeng Motors delivered 20,011 new vehicles in January, down 34.07% YoY and down 46.65% MoM. In January, the XPeng X9 continued to sell strongly, with monthly deliveries of 4,219 units, up 413.9% YoY. As of month-end January, its cumulative deliveries reached 51,897 units, making it the fastest car model among China's emerging MPV makers to surpass 50,000 deliveries. In the same month, pre-orders opened for the 2026 XPeng X9 BEV version. As the “world’s longest-range 5C pure-electric large seven-seater,” the new model was fully aligned with the hot-selling super extended-range version in terms of product competitiveness. From now until the new model goes on sale, a 2,000-yuan deposit can be used to offset 7,000 yuan of the car purchase price. In addition, according to data from Xiaomi Auto’s official Weibo account, Xiaomi Auto delivered more than 39,000 vehicles in January, even surpassing Leap Motor, which ranked first among emerging EV makers. On the same day, Xiaomi also announced car purchase benefits related to the Xiaomi SU7 and Xiaomi SU7 Ultra. All Xiaomi YU7 variants are eligible for “seven years of low interest”! A new low-monthly-payment option has been added, with down payments starting from 99,900 yuan and monthly payments from less than 2,000 yuan. Orders placed before 24:00 on February 28 also qualify for an optional “three years interest-free” plan, with down payments starting from 74,900 yuan and monthly payments as low as 4,961 yuan. At the same time, buyers can enjoy limited-time car purchase benefits of up to 66,000 yuan. Regarding store expansion progress, Xiaomi Auto said it added nine new stores in January, bringing its total to 484 stores across 139 cities nationwide; six more stores are expected to be added in February, with coverage expected to expand to two new cities, Jiangmen and Zhoukou; as of January 31, it had 270 service outlets nationwide, covering 159 cities across the country. As for BYD, the leader in EVs, its January sales reached 210,051 units, with cumulative NEV sales exceeding 15.3 million. BYD exported a total of 100,482 NEVs in January. Notably, there was also fresh news on BYD’s solid-state battery business. A CLS reporter learned from BYD’s Investor Relations Department that BYD is exploring multiple technology pathways in the solid-state battery field, taking sulphide solid-state batteries as an important technical direction, and has achieved breakthroughs in battery life and fast charging, with small-scale production expected in 2027. In the sodium-ion battery field, it is already at the development stage of its third-generation product technology platform and has developed sodium-ion battery products capable of 10,000 cycles. The mass-production period will be determined based on actual market conditions and client demand. Cui Dongshu, Secretary General of the CPCA, commented that the recent weakness in January auto retail sales was reasonable, given that the vehicle purchase tax exemption policy had just ended and only some provinces and cities had launched trade-in and renewal subsidy policies, while mid-January last year was a peak sales period before Chinese New Year, and the holiday timing shift also weighed on January auto retail performance. It was expected that as local detailed rules for replacement subsidies were gradually refined and subsidy application channels became smoother, together with the gradual release of potential car purchase demand before the Chinese New Year holiday, the auto retail market would gradually recover and improve. At the Beginning of 2026, National and Local Governments Across Many Regions Mentioned Policies to Promote Auto Consumption; More Than 20 Regions Introduced New Trade-in and Car Purchase Subsidy Policies After entering 2026, as national subsidies were scaled back, consumer-stimulus policies to promote consumption were being rolled out intensively at both the national and local levels through multiple measures. According to incomplete statistics, more than 20 provinces, municipalities, and autonomous regions, including Beijing, Shanghai, Chongqing, Zhejiang, and Sichuan, had issued detailed rules for activities such as automobile trade-in, retirement and renewal, or car purchase subsidies. On December 31, 2025, the general offices of eight departments including the Ministry of Commerce issued the Implementation Rules for Automobile Trade-in Subsidies in 2026, which officially took effect on January 1, 2026. It mentioned that in 2026, a one-time subsidy would be granted to individual consumers who retired gasoline passenger vehicles registered on or before June 30, 2013, diesel and other fuel passenger vehicles registered on or before June 30, 2015, or passenger NEVs registered on or before December 31, 2019, and purchased either a passenger NEV included in the Ministry of Industry and Information Technology’s Catalog of NEV Models Eligible for Vehicle Purchase Tax Reduction and Exemption or a fuel passenger vehicle with an engine displacement of 2.0 liters or below. For those who retired the above qualified old vehicles and purchased a passenger NEV, a subsidy of 12% of the new vehicle’s selling price (tax included, the same hereinafter) would be provided, with the subsidy amount (rounded up to the nearest yuan, the same hereinafter) capped at 20,000 yuan; for those who retired the above qualified fuel passenger vehicles and purchased a fuel passenger vehicle with an engine displacement of 2.0 liters or below, a subsidy of 10% of the new vehicle’s selling price would be provided, with the subsidy amount capped at 15,000 yuan. The CPCA analyzed that the key words for the 2026 trade-in policy were not “further escalation,” but “more sustainable, more balanced, and more supervisable.” Changing the subsidy amount to a proportion of vehicle price with a cap was intended to ensure more balanced use of subsidies and avoid situations in which quotas were consumed too quickly in the early stage, forcing subsidies to be suspended later. The adjustment to the calculation method would also have a certain impact on the structure of the automobile market, among which the stimulus for low-priced car models was significantly weakened, while car models priced at 160,000-200,000 yuan could fully enjoy the subsidy, making the policy more friendly to replacement purchases for upgrade demand. Producers needed to meet market demand through product competitiveness and financial solutions, with greater emphasis on “long-term value” such as driving range, intelligence, and recharging experience, rather than relying on one-off subsidies. The China Automobile Dealers Association also stated in an article that the 2026 automobile trade-in policy strengthened overall work coordination and promoted the efficient direct delivery of subsidy funds. This would allow limited funds to benefit more consumers, especially by meeting the needs of rigid-demand groups. The scope of eligible car owners is expected to be further expanded, with support more clearly focused on encouraging the phaseout of old vehicles and the purchase of energy-efficient vehicles and NEVs. Implementation is expected to emphasize the role of market mechanisms, making subsidies better aligned with actual demand. Procedures are clear and convenient, and supervision and management mechanisms are more robust. Overall, the policy is expected to continue stimulating consumer vitality and add new momentum to the transformation, upgrading, and high-quality development of the automotive industry. Since the beginning of 2026, according to incomplete statistics, multiple provinces and cities, including Shanghai, Beijing, Sichuan, and Shandong, have successively released detailed rules related to the automotive trade-in policy, continuously promoting local auto consumption: [Shanghai's 2026 Automotive Trade-In Policy Takes Effect, Maximum Subsidy 20,000 yuan] Shanghai's 2026 automotive trade-in policy has taken effect. Eight departments, including the Shanghai Municipal Commission of Commerce, jointly issued the Implementation Rules for the 2026 Shanghai Automotive Trade-In Subsidy Policy, officially launching subsidy programs for vehicle retirement and renewal and replacement renewal. Individual consumers can receive subsidies of up to 20,000 yuan. The policy has been implemented since January 1, 2026, and applications will be accepted until January 10, 2027. [Hubei's 2026 Detailed Rules for Automotive Trade-In Subsidies Take Effect, Maximum Subsidy 20,000 yuan] The Hubei Provincial Department of Commerce, together with eight departments including the provincial National Development and Reform Commission and the Department of Economy and Information Technology, officially issued the Detailed Rules for the Implementation of Hubei Province's 2026 Automotive Trade-In Subsidies. The rules specify that through two major approaches, retirement and renewal and replacement renewal, special subsidies will be provided to individual consumers purchasing NEV and small-engine gasoline passenger vehicles, with the maximum subsidy amount reaching 20,000 yuan. The policy has been formally implemented since January 1, 2026. [Xi'an's 2026 Detailed Rules for Automotive Trade-In Subsidies Take Effect, Maximum Subsidy for Retiring a Vehicle and Replacing It with a NEV Reaches 20,000 yuan] Xi'an issued the Detailed Rules for the Implementation of Xi'an's 2026 Automotive Trade-In Subsidies, clarifying that through two major models, retirement and renewal and replacement renewal, special subsidies will be provided for individual consumers purchasing new vehicles. The policy covers the entire year, and subsidy applications will be accepted until January 10, 2027, further reducing residents' car purchase costs and supporting the upgrading of the automotive consumer market. [Beijing's 2026 Automotive Trade-In Subsidy Program Starts on February 9, Maximum Subsidy 20,000 yuan] Beijing's 2026 automotive trade-in subsidy policy has been officially unveiled. Reporters learned on February 6 that Beijing had officially released the Implementation Plan for Beijing's 2026 Automotive Trade-In Subsidies and is about to launch two types of subsidies, "retirement and renewal" and "replacement renewal." The application system will open at 10:00 a.m. on February 9, and eligible car purchase consumers can receive subsidy support of up to 20,000 yuan. Among them, "retirement and renewal" refers to retiring an old vehicle and purchasing a new one. Consumers who purchase a passenger NEV can receive a subsidy of 12% of the new vehicle's selling price, with the subsidy amount capped at 20,000 yuan; those who purchase a fuel passenger vehicle with an engine displacement of 2.0 liters or below can receive a subsidy of 10% of the new vehicle's selling price, with the subsidy amount capped at 15,000 yuan. [Sichuan: Supporting Vehicle Replacement and Renewal, with Subsidies of up to 15,000 yuan] The Sichuan Provincial NDRC and Department of Finance issued a notice on printing and distributing the Policy Measures of Sichuan Province for Implementing Large-Scale Equipment Renewal and Consumer Goods Trade-in in 2026. The notice mentioned support for vehicle replacement and renewal. In 2026, individual consumers who transfer a passenger vehicle registered under their own name through sale and purchase a passenger NEV included in the Ministry of Industry and Information Technology's Catalog of NEV Models Eligible for Vehicle Purchase Tax Reduction and Exemption, or a fuel passenger vehicle with an engine displacement of 2.0 liters or below, will be granted a one-time subsidy. For those replacing with a passenger NEV meeting the above conditions, a subsidy of 8% of the new vehicle's selling price will be granted, with the subsidy amount capped at 15,000 yuan; for those replacing with a fuel passenger vehicle meeting the above conditions, a subsidy of 6% of the new vehicle's selling price will be granted, with the subsidy amount capped at 13,000 yuan. Cui Yan, Deputy Director of Guolian Minsheng Research Institute and Chief Auto Analyst, said that various regions had successively launched 2026 trade-in subsidies and, coupled with the gradual rollout of new models after Chinese New Year and ahead of auto shows, auto sales were expected to stabilize and rebound. Speaking of auto market sales in January, he said overall end-use demand was relatively mediocre in January, mainly because local subsidies on the policy side had not yet been officially launched, while on the supply side few new car models were introduced by automakers. "These two factors are currently improving. Since mid-to-late January, local governments have successively launched trade-in subsidies; supply side, after Chinese New Year and before auto shows, automakers will gradually launch new vehicles or begin pre-launch promotional campaigns." Auto demand is expected to stabilize and rebound after Chinese New Year. According to CCTV News, in 2026, the Ministry of Commerce, together with regional authorities and relevant departments, will further advance the consumer goods trade-in program, with a focus on further optimizing policy implementation in areas such as automobiles and continuously releasing consumption potential. Ministry of Commerce big data showed that as of February 5, 335,000 applications for 2026 auto trade-in subsidies had been filed, driving 53.77 billion yuan in new vehicle sales, strongly supporting the development of the auto market and the recycling and reuse of resources, while promoting industrial quality upgrading and green transformation. In January, the average price of new vehicles participating in trade-in exceeded 160,000 yuan, significantly higher than a year earlier; nationwide, 659,000 retired vehicles were recycled, up 50.2% YoY. On February 9, the Ministry of Commerce held a symposium with automakers to study work related to automobile circulation and consumption. Representatives from relevant automotive industry associations, research institutions, and enterprises attended the meeting. Vice Minister of Commerce Sheng Qiuping attended the symposium and exchanged views with participants. Sheng Qiuping pointed out that China’s ultra-large market had a solid foundation, the automotive consumption chain was long and had great potential, and the continued implementation of policies provided stable support, leaving much room for expanding automobile consumption across the entire value chain. In 2026, the Ministry of Commerce will work with relevant departments to pursue both policy support and reform and innovation, integrate existing measures with incremental policy, optimize the implementation of the automobile trade-in policy, launch pilot reforms for automobile circulation and consumption, improve industry management systems, and take multiple measures to promote both the expansion and upgrading of automobile consumption. On February 12, as Chinese New Year approached, the General Office of the Ministry of Commerce issued the Notice on Properly Carrying Out Trade-in Programs for Consumer Goods During the 2026 Chinese New Year Holiday. It stated that all localities should strengthen funding support for consumer goods trade-in subsidies during the Chinese New Year period, leverage the advantages of different channels, ensure effective policy implementation, and better meet consumer demand. In line with Chinese New Year customs and to create a stronger festive atmosphere, consumers were encouraged to go out for shopping and consumption. During the nine-day 2026 Chinese New Year holiday (February 15–23), consumers will be fully ensured access to apply through offline channels for trade-in subsidies for home appliances and subsidies for purchasing new digital and smart products. Consumers who purchase new cars during the nine-day Chinese New Year holiday will also be eligible to apply for automobile trade-in subsidies in accordance with policy requirements.

[SMM Analysis: The Uncommon Yet Not Ordinary Prussian White: How Can Low-Cost Materials Sustain Competitiveness?] SMM News on June 18: Driven by the goal of carbon neutrality, sodium-ion batteries have emerged in the fields of energy storage systems (ESS) and start-stop applications due to their advantages of abundant resources and low cost. The Prussian route, as one of the three major cathode routes for sodium-ion batteries, is gradually gaining attention. Prussian materials are currently divided into two types: Prussian blue and Prussian white. The main reason for the color difference between the two cathodes lies in crystalline water. Prussian white requires further dehydration based on Prussian blue, so precise control of crystalline water is necessary for Prussian white...

[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?

[US and UK Reach Trade Agreement Terms Including Import Car Quotas and Steel and Aluminum Tariffs] According to CCTV News, on June 16 local time, the US White House issued a statement indicating that US President Trump and UK Prime Minister Starmer jointly announced the general terms of a trade agreement. It is understood that under the general terms, the US plans to set an annual quota of 100,000 units for UK car imports, with a tariff rate of 10%. The UK has committed to making efforts to meet US requirements regarding the security of the supply chain for steel and aluminum products exported to the US, as well as the nature of ownership of relevant production facilities. On the premise that the UK meets these requirements, the US plans to promptly set "most-favored-nation" tariff quotas for steel and aluminum products, as well as certain derived steel and aluminum products, produced in the UK. In addition, both sides have committed to strengthening the supply chains for aerospace and aircraft manufacturing by establishing duty-free bilateral trade in certain aerospace products. The US has abolished tariffs imposed on the UK's aerospace industry under three previous executive orders. (Finance Link) [Ministry of Ecology and Environment Issues Announcement on Regulating the Import Management of Recycled Black Mass Raw Materials and Recycled Steel Raw Materials for Lithium-Ion Batteries] On June 10, the General Office of the Ministry of Ecology and Environment issued the "Announcement on Matters Related to Regulating the Import Management of Recycled Black Mass Raw Materials and Recycled Steel Raw Materials for Lithium-Ion Batteries," as follows: 1. Recycled black mass raw materials for lithium-ion batteries that meet the requirements of Attached Table 1 are not classified as solid waste and may be freely imported. Recycled black mass raw materials cannot be mixed with other types of recycled raw materials, and different types of recycled raw materials cannot be declared under the same customs declaration form. Imported recycled black mass raw materials cannot be imported in bulk, and different categories of recycled black mass raw materials should be placed separately. 》Click to view details [Xiaomi Auto: Currently, There Are No Official Channels for Bulk Car Orders or Cash Subsidies] In the latest Q&A session with netizens on the evening of June 16, Xiaomi Auto stated that currently, there are no official channels for bulk car orders or cash subsidies from Xiaomi Auto. The public is advised not to believe such information, let alone engage in monetary transactions to avoid financial losses. When encountering similar sales information, the public is urged to carefully verify it and rely on information released through Xiaomi Auto's official channels. (Finance Link) [Bohai Auto: Plans to Acquire Stakes in Multiple Auto Parts Companies, Stock Resumes Trading] Bohai Auto (600960.SH) announced that the company plans to acquire a 51% stake in BAIC Mould & Plastic held by Hainachuan, a 51% stake in Langfang Adient, a 100% stake in Zhilian Technology, and a 50% stake in Leoni Wiring Systems through the issuance of shares and payment in cash, and will raise supporting funds. Following this transaction, the publicly listed firm will expand its main business to include automotive exterior parts, automotive seat frames, automotive electronics, automotive wiring harnesses, and other products. Upon completion of the transaction, the publicly listed firm will extend its product lines into more automotive parts sectors by integrating the R&D capabilities of the target company, thereby comprehensively enhancing the company's core competitiveness. The company's A-shares will resume trading from the market open on June 17, 2025. (Financial Associated Press) [Desay SV: Reaches Cooperation with Chery Automobile and Hyptec to Advance the Implementation of Intelligent Driving Technology] Desay SV stated on an interactive platform that the company has reached relevant cooperation with Chery Automobile to jointly develop an in-cabin and driving integrated central computing platform. This platform is built on the company's independently developed intelligent central computing platform, ICPS01E, and adopts an innovative single-chip multi-domain fusion solution, becoming the industry's first mass-producible in-cabin and driving integrated SOC product. This marks a significant breakthrough for the company in the core technology field of intelligent driving. Meanwhile, the company has signed a strategic cooperation agreement with Hyptec to jointly develop and accelerate the implementation of the next-generation in-cabin and driving integrated, and even central computing platforms, based on a new generation of high-performance computing chips, to meet the requirements of L4 high-level autonomous driving hardware and software systems. (Financial Associated Press) [Launch Meeting for the Special Project on Improving the Quality and Reliability of China's New Energy Vehicles Held in Beijing] The China Association of Automobile Manufacturers (CAAM) organized and held the "Launch Meeting for the Special Project on Improving the Quality and Reliability of China's New Energy Vehicles" in Beijing. More than 100 representatives and experts from China's automotive T10 enterprises, mainstream vehicle manufacturers in the industry, core component enterprises for batteries, motors, and electronic control systems, intelligent vision and key electronic component enterprises, as well as industry service institutions, attended the meeting. The meeting called on relevant parties in the NEV industry chain, particularly T10+ vehicle manufacturers, core system assembly enterprises, key component and module enterprises, and related institutions, to take proactive actions to accelerate the establishment of a quality and reliability innovation and development system; learn from advanced quality and reliability experiences, strengthen relevant cutting-edge basic research, and strive to advance the higher-quality development of the NEV industry and accelerate the construction of China as an automotive powerhouse. (Financial Associated Press) Related Readings: [SMM Analysis] Official HS Codes for Black Mass Imports and Exports: What Impact on Domestic Lithium Battery Recycling Enterprises? [SMM Analysis] Payment Terms for Automakers Shortened to 60 Days, Ushering in Major Changes in the Automotive Supply Chain [SMM Analysis] Breakthrough Achieved in Portugal's Lithium Mine Project, Accelerating Development of Europe's Largest Spodumene Deposit Weekly Summary of the Lithium Iron Phosphate Market in June [SMM Lithium Battery Market Analysis] [SMM Analysis] Behind the 60-Day Payment Commitment: Suppliers' Wry Smiles and Anticipations Cobalt Product Prices "Continuously Decline": Co3O4 Falls by 7,650 Yuan in a Single Week. Will It Stop Next Week? [Weekly Observations] [SMM Analysis] Rio Tinto Teams Up with Codelco to Enter the Lithium Triangle, Investing $900 Million to Develop a World-Class Salt Lake Project [SMM Analysis] Separator Prices Remain Stable [SMM Analysis] Raw Material Prices Drag Down Overall Prices, but a Rebound May Occur During the Policy Window Period Battery and Solid-State Battery Sectors Strengthen Again; Multiple Automakers Announce Latest Progress; Lopal Shares Surge by Daily Limit for Nearly 6 Consecutive Days [Hot Stock] [SMM Analysis] Cathode Material Production Increased MoM in May, While Downstream End-Use Demand Growth Remained Sluggish [SMM Analysis] Anode Material Production Increased in May Due to Rising Demand [SMM Analysis] Co3O4 Production Increased MoM in May, with Most Market Participants Adopting a Cautious Wait-and-See Attitude Cobalt Product Quotations Collectively "Fell", While Cobalt Chloride Smelters Maintained Firm Quotations; Will Prices Remain High and Volatile in the Future? [Weekly Observations] [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Methods: "Direct Export from China, Re-Export via Malaysia, and US Domestic Production" (Part 1) [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Methods: "Direct Export from China, Re-Export via Malaysia, and US Domestic Production" (Part 2) [SMM Analysis] Impact of US Tariffs on China on the Export Methods and Prices of Chinese ESS Battery Cells to the US - Exploring Three Methods: "Direct Export from China, Re-Export via Malaysia, and US Domestic Production" (Part 3) [SMM Analysis] New Breakthrough in Lithium Battery Technology: Can a Single Injection Extend Battery Life?

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