Recently, the Shanghai Municipal National Development and Reform Commission (NDRC) issued a notice on the *Key Work Arrangements for Carbon Peaking, Carbon Neutrality, Energy Conservation and Emission Reduction in Shanghai for 2026*. The document stated that Shanghai would promote the diversified development of local renewable energy sources such as wind and solar power, with the city adding 600,000 kW of new PV installations. Two batches of standalone ESS power station projects would be advanced. The results of competitive bidding on mechanism-based electricity prices for new energy incremental projects would be publicly announced. Huangpu District would be organized to carry out the national carbon peaking pilot program. Chongming District would be supported in steadily advancing the national pilot program for ecological product value realization mechanisms. The *Shanghai Action Plan for Accelerating Green and Low-Carbon Transformation (2024–2027)* would be implemented, promoting the deployment of 15 key application scenarios for green and low-carbon transformation. The construction of national-level zero-carbon industrial parks would be supported, and a number of municipal-level zero-carbon industrial parks would be developed.

Guotai Environmental Protection convened the 15th meeting of the 4th Board of Directors, reviewing and approving the "Proposal on Amending the Business Scope, Revising the , and Handling Industrial and Commercial Registration Changes." This adjustment not only represents a simple business expansion but also marks a key transformation of this traditional environmental protection enterprise into the field of new energy circular economy.

On February 24, Guotai Environmental Protection held its 15th meeting of the 4th Board of Directors, reviewing and approving the "Proposal on Amending the Business Scope, Revising the , and Handling Industrial and Commercial Registration Changes." This adjustment not only represents a simple business expansion but also marks a critical transformation of this traditional environmental protection enterprise into the field of new energy circular economy—adding businesses such as lithium-ion battery recycling, PV equipment leasing, and battery manufacturing, officially entering the rapidly growing closed-loop of the new energy industry chain. Guotai Environmental Protection's strategic adjustment is not accidental. In recent years, China's new energy vehicle industry has maintained rapid growth. Data shows that in 2025, China's NEV production and sales both achieved nearly 30% growth, with NEVs accounting for 47.9% of new vehicle sales. As early power batteries gradually enter their retirement phase, a massive backend market is accelerating its formation. Power battery recycling involves the collection, processing, and reuse of waste power batteries, aiming to promote resource circulation, protect the ecological environment, and drive long-term industry development. Currently, the standardized recycling rate for waste power batteries in China remains below 50%, with a large number of waste batteries flowing into informal channels such as "small workshops," posing environmental risks and causing the waste of strategic resources. Standardized recycling and utilization of retired power batteries are of great significance for reducing environmental pollution, ensuring the security of national critical metal resources, promoting industrial greening, and enhancing international competitiveness. In February 2025, the State Council Executive Meeting reviewed and passed the "Action Plan for Improving the NEV Power Battery Recycling and Utilization System," explicitly proposing to improve the standard system and achieve standardized, safe, and efficient recycling and utilization of power batteries. Shortly thereafter, six departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission (NDRC), and the Ministry of Ecology and Environment jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles," which will take effect on April 1, 2026. This upcoming regulation is regarded by the industry as a "watershed" for the sector. The "Management Measures" establish a "full life cycle" supervision system for power batteries, create a national traceability information platform for NEV power batteries, promote the monitoring of power battery flows and information traceability throughout their life cycle, and clarify the recycling responsibilities of power battery enterprises and NEV producers. This means that power battery recycling will shift from the past "guerrilla" operations to an era of "regular army" engagement. The introduction of the new regulation sets a clear "code of conduct" for the industry, aiming to resolve the structural contradiction between the "segmented" layout of the industry chain and the "full life cycle" management requirements, and to build a closed-loop chain of "production—use—recycling—regeneration."

To standardize the recycling and treatment of waste electrical and electronic products and effectively prevent and reduce environmental pollution, the Ministry of Ecology and Environment recently issued the "Technical Specification for Pollution Control in the Treatment of Waste Electrical and Electronic Products" (HJ 527—2026). The specification is expected to take effect on March 1 this year.

On June 10, 2025, the Ministry of Ecology and Environment (MEE) of the People's Republic of China officially announced the "Announcement on Matters Related to Regulating the Import Management of Recycled Black Mass Raw Materials for Lithium-ion Batteries and Recycled Steel Raw Materials".

On April 29, 2025, SMM Senior Director Jin Yu, Secondary Aluminum Head Weiquan Ding, International Recycling Head Xiaoyao Zhang, and Senior Aluminum Analyst Shihao Yang visited Hunan Tonghe New Material Co., Ltd. . They were warmly welcomed by Chairman Jingwei Qiu, Deputy General Manager Shuai Kang Qiu, and their team. Subsequently, both parties engaged in discussions and exchanges on the secondary aluminum market and the development of the non-ferrous metals landscape. Through this discussion, both sides enhanced their mutual understanding and recognition, laying a solid foundation for deepening cooperation and achieving mutual benefits in the future. Company Introduction Sustainable Development of Tonghe There is no such thing as waste in the world, only resources misplaced. Aluminum possesses excellent recyclability, allowing it to be reused multiple times without affecting its performance. The recycling of aluminum does not cause environmental pollution, with energy consumption being less than 5% of that required for primary aluminum production. The industrial process is short, with minimal emissions of harmful gases and dust. From the perspectives of resources, environment, market, as well as social and economic benefits, aluminum recycling is a cause that benefits the present and contributes to future generations. Driven by our pursuit of this noble cause, in 2018, eight companies—Hunan Hengxinrui Nonferrous Metals Co., Ltd., Miluo Ruishen Nonferrous Metals Co., Ltd., Miluo Guixin Nonferrous Metals Co., Ltd., Hunan Boji Nonferrous Metals Co., Ltd., Hunan Xinlong Yunyun Metal Products Co., Ltd., Miluo Xiongjun Nonferrous Metals Co., Ltd., Miluo CNGR Nonferrous Metals Co., Ltd., and Miluo Xiangheng Nonferrous Metals Co., Ltd.—were restructured to form the new Hunan Tonghe New Material Co., Ltd. We invested 200 million yuan in the Miluo Circular Economy Industrial Park in Hunan Province to build a new production facility with an annual capacity of 200,000 mt of die-cast aluminum alloy ingots and secondary aluminum billets. Based on the concept of industrial ecology, we adopted internationally advanced scientific technologies to improve the quality of secondary aluminum while minimizing or even eliminating the adverse environmental impacts of aluminum recycling. A garden-style secondary aluminum plant, surpassing international advanced standards, was established in the Miluo Circular Economy Industrial Park in Hunan. No matter how times change, Tonghe will always adhere to the development philosophy of integrity, conservation, environmental protection, and sustainable operation. We will continue to forge ahead, innovate boldly, and prioritize people, thereby fulfilling our social responsibility of united and harmonious development as Tonghe Company. SMM Contact Person Weiquan Ding 18029344837

As the world places greater emphasis on sustainable development, the recycling and reuse of metal resources not only effectively reduces resource waste but also mitigates environmental pollution, thereby promoting a green transformation of the economy.

On June 10, the Ministry of Ecology and Environment of the People's Republic of China publicly issued the "Public Notice on Regulating Matters Related to Imported Recycled Black Mass Raw Materials from Lithium-ion Batteries and Recycled Steel Cases," with the document index number 000014672/2025-00219. The notice disclosed the HS code for recycled black mass raw materials from lithium-ion batteries as 3824999996, and the announcement will be implemented from August 1, 2025.

In recent years, the significant fluctuations in lithium prices have subjected enterprises across the industry chain to a rollercoaster of experiences, encompassing both the highs and lows of the market. Although lithium prices have long since lost their former glory, the development prospects of the new energy industry chain remain bright amid the global advocacy for a low-carbon economy, with the importance of lithium resources becoming increasingly prominent. As one of the regions with the most abundant lithium resources globally, South America, particularly the "Lithium Triangle" region (comprising Bolivia, Argentina, and Chile), boasts over 55% of the world's proven lithium reserves. Consequently, South America's lithium resources play a pivotal role in the global energy transition. Against this backdrop, SMM organized the 2025 SMM South American Lithium Resources Field Trip . Led by Chen Siyu, the project manager of SMM's overseas South American lithium resources field trip, and Zhou Zhicheng, a senior analyst in new energy and lithium batteries, the delegation visited South American lithium-related enterprises, toured local lithium ore and material companies, and held discussions with company executives from May 15 to May 26, 2025, to explore potential opportunities in lithium ore resource development, technological exchanges, and investment cooperation. On May 18, SMM and the delegation members headed to Tibet Summit Resources Co., Ltd., the actual controller of Argentina Lithium & Potash Co., Ltd. for in-depth exchanges. Company Profile SMM and the delegation members visited Tibet Summit Resources Co., Ltd., the actual controller of Argentina Lithium & Potash Co., Ltd. . The general manager in charge of Tibet Summit's operations in Argentina warmly received the delegation and provided a detailed introduction to the company's business development. Tibet Summit, positioned in the upstream of the non-ferrous metal resources industry and relying on its lead-zinc polymetallic mine in Tajikistan, has emerged as a benchmark project for successful investments by Chinese enterprises in countries along the "Belt" under the "Belt and Road" Initiative. Meanwhile, the company has commenced investments in upstream lithium salt lake development projects in the new energy industry in Argentina, along the "Road". The company has continuously achieved transformation and upgrading, becoming one of the leading stocks in the mining resource development sector on the securities market. In April 2018, the company, in collaboration with its financial investment partners, acquired and privatized a Canadian publicly listed firm for $206.7 million, thereby gaining full ownership of its two lithium salt lake projects in Argentina, which boast excellent resource endowments and advanced development progress. This marked the company's official entry into the upstream lithium resource development sector of the new energy industry. In Argentina, South America, Tibet Summit indirectly controls Argentina Lithium & Potash Co., Ltd., whose projects in Argentina cover two major lithium salt lake blocks. These projects have completed resource assessments, possess economic viability for mining, are supported by freshwater resources, and have suitable geological conditions, laying a solid foundation for continuous operations and large-scale lithium extraction. It is reported that the Diablillos salt lake project is expected to be completed and put into operation in 2025. Preliminary drilling and oil pumping tests have been completed, and the construction progress is advancing steadily. The project site will adopt a hybrid energy supply model combining PV and diesel to meet both environmental protection and continuous operation needs. The "adsorption + membrane separation" process (DLI process) used in Argentina's salt lake projects significantly differs from the traditional evaporation pond method, offering the following advantages: High lithium recovery rate: The recovery rate reaches 80-90%, placing it at a leading level among similar projects; Shortened production cycle: The entire production cycle is shortened from the traditional 18-24 months to approximately 12 months; Reduced environmental impact: There is no need to construct large-area evaporation ponds, avoiding the occupation of significant land areas and significantly reducing environmental pollution; Flexible and adjustable process: The process can be fine-tuned according to different brine compositions, enabling adaptive extraction of complex brines; Optimized energy consumption: The membrane separation and adsorption processes have lower energy consumption while improving overall process efficiency. In terms of operating costs, according to calculations by the project team, the total production cost per tonne of lithium carbonate using the adsorption + membrane method is expected to be controlled at around 40,000 yuan RMB , significantly lower than that of traditional processes. This also means that when lithium prices remain at 6 yuan RMB/gram (60,000 yuan RMB/mt), the project still maintains strong profitability, with an attractive internal rate of return (IRR) and strong resilience to market cycles. The final products of the aforementioned projects will primarily be lithium carbonate, replacing lithium chloride. Strategies will be flexibly adjusted based on market demand and profitability, without blindly pursuing high-purity products. Focus will be placed on end-use market demand and downstream customer acceptance. In addition, the company also stated that Argentina encourages lithium resource development at the national level, with smooth export channels. Influenced by the international shift in the lithium battery industry chain and price trends, the lithium salt lake projects have good medium and long-term development prospects. Overall, Tibet Summit's lithium salt lake projects in Argentina are international resource development projects with a clear structure, advanced technology, optimized costs, and promising profitability. Through technological innovation, localization efforts, policy adaptation, and the effective export of Chinese experience, the projects possess strong medium and long-term development potential and serve as a replicable model for Chinese enterprises to "go global." Group photo during the field trip After the visit, SMM and members of the field trip team took a group photo together with Tibet Summit Resources Co., Ltd., the actual controller of Argentina Lithium & Potash Co., Ltd., to deepen cooperation and friendship. It is believed that there will be deeper exchanges and cooperation in the future! Following this field trip and survey, SMM and members of the delegation gained a deeper understanding of the business development of Argentina Lithium & Potash Co., Ltd., which is actually controlled by Tibet Summit Resources Co., Ltd. They also gained a more profound understanding of the market status, development trends, and existing issues in the lithium battery industry in South America. They will continue to deepen cooperation with large enterprises to achieve complementary advantages and promote the development of the lithium battery industry.

Huicheng New Material Co., Ltd. utilizes a manganese slag production line to process approximately 200 mt of manganese sulfide slag per day. During the production process, it yields about 20 mt of manganese metal and 1 mt of nickel-cobalt metal (refined cobalt). Meanwhile, the cost of raw materials has been reduced by 22%, electricity consumption has decreased by 90%, and water consumption has been cut by 50%. This not only effectively conserves land resources but also reduces the risk of environmental pollution, according to Dong Xiongwen, the assistant to the company's chairman.