On July 14, China Northern Rare Earth's stock price rose. As of the close on July 14, it was up 2.18% to 39.83 yuan per share. In market news, China Northern Rare Earth released its semi-annual earnings forecast, showing: Based on preliminary estimates by the company's financial department, net profit attributable to owners of the parent for H1 2026 is expected to be between 1.98 billion and 2.06 billion yuan, representing an increase of 1.05 billion to 1.13 billion yuan compared with the same period last year (as per statutory disclosure data), up 112.74% to 121.33% YoY. Excluding non-recurring items, net profit attributable to owners of the parent for H1 2026 is expected to be between 1.99 billion and 2.07 billion yuan, an increase of 1.093 billion to 1.173 billion yuan YoY, up 121.90% to 130.82%. The main reasons for the expected profit increase in the period are: In H1 2026, the company served the national rare earth resource strategy and fully implemented the requirements for safety control of the rare earth industry chain. Affected by factors such as supply constraints on the raw material side and the release and sustained growth of downstream demand at multiple points, rare earth product prices generally strengthened and consolidated. The company focused on its annual production and operation targets, carried out integrated planning and comprehensive measures, strengthened comprehensive budget management, and worked on cost reduction, quality improvement, and efficiency gains in a coordinated manner. It scientifically organized production scheduling, intensified marketing operations, deepened reform and innovation, and strengthened group management and risk control. The company advanced the deep integration of professional management, lean management, and 5S management to a high standard, promoted key project construction, and accelerated the development of new quality productive forces through management and R&D innovation. With strong value creation capabilities across the industry chain and core competitiveness, the company provided solid support and assurance for achieving good operating results. The company refined the organization and operation of production scientifically, with production volumes of rare earth smelting and separation products, rare earth metal products, and new rare earth materials all reaching historical highs for the same period; the subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. achieved operating revenue of approximately 9.5 billion yuan in H1, up about 107% YoY, maintaining growth for three consecutive years; the subsidiary Inner Mongolia Xi'ao Ke Hydrogen Storage Alloy Co., Ltd. officially put its first batch of 1,000 hydrogen-powered two-wheelers into operation in Baotou, with a cumulative safe driving mileage of 170,000 kilometers, demonstrating notable project success. The company persisted in benchmarking against internal and external excellence, tapping into internal potential, and strengthening refined management, leading to significant improvements in multiple economic and technical indicators. Targeted measures were adopted for each business segment: In smelting and separation, the division overcame new cost changes brought by rising prices of raw and auxiliary materials, effectively managed cost fluctuations, scientifically organized production scheduling, and ensured new product supply demands. In rare earth metals, leveraging the concept of lean production as a starting point, digital and intelligent methods were further used to strengthen on-site process operation management, driving new breakthroughs in economic and technical indicators such as quality and material ratios. In new rare earth materials and applications, the segment fully utilized newly added capacity advantages, precisely aligned with client needs, and made new progress in promoting sales through production. Deepening industry chain synergy, the Company solidified the foundation of downstream client cooperation while ensuring stable product supply. The Company closely tracked market demand, strengthened marketing management, optimized sales structure, client credit evaluation, and product account period management, adjusted and shortened account periods by category, secured the fundamental base with long-term agreement orders, and met differentiated market demand through retail. Sales of rare earth metals and magnetic materials rose steadily, achieving full coverage of top-tier magnetic material players; sales of lanthanum-cerium products increased YoY, further digesting historical inventory; sales of polishing materials increased YoY; 5 new equipment items and 20 customized and distinctive new products were developed, continuously expanding product application scenarios. Key project construction advanced efficiently, continuously enhancing intelligence and informatization levels. The first phase of the rare earth green smelting upgrade and transformation project has been put into production, with the entire production line connected; the second phase construction is progressing in an orderly manner. Projects across the industry chain, including mergers and acquisitions, restructuring, joint ventures, cooperation, and capacity expansion and production increase for rare earth metals, magnetic material alloys, magnets, and secondary resource utilization, are accelerating toward implementation. The secondary resource utilization project achieved volume increase and quality and efficiency improvement; the Company accelerated its pace of digital and intelligent transformation, with digitalization and intelligence levels continuously improving. Regarding the 2026 operating plan, China Northern Rare Earth announced in its 2025 annual report: 2026 is the opening year of the 15th Five-Year Plan and a crucial year for the Company to advance high-quality development and accelerate the building of a world-class rare earth leader. The Company will uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guide, take fostering a strong sense of community for the Chinese nation as the main theme, fully implement the spirit of the 20th CPC National Congress and all previous plenary sessions of the 20th CPC Central Committee, and translate into action the important speeches and instructions of General Secretary Xi Jinping on Inner Mongolia and the rare earth industry, as well as the decisions and plans of higher-level authorities such as the Inner Mongolia Autonomous Region and Baotou City. Adhering to the general principle of pursuing progress while ensuring stability, the Company will fully, accurately, and comprehensively implement the new development philosophy, bravely shoulder its responsibilities and missions, steadily improve the quality and efficiency of operations, build an industry system covering all elements and categories, promote the deep integration of scientific and technological innovation with industrial innovation, accelerate the pace of deepening reforms, enhance modern governance capabilities, continuously strengthen core functions and enhance core competitiveness, accelerate the realization of a world-class rare earth leader, ensure a good start and solid beginning for the 15th Five-Year Plan, and make new and greater contributions to the construction of the "Two Rare Earth Bases." The main production and operation targets for 2026 (these targets are merely planned objectives, and there is uncertainty as to whether they can ultimately be achieved. They do not constitute a substantive commitment by the Company to investors. Investors and relevant parties should maintain sufficient risk awareness and understand the differences between plans, forecasts, and commitments): achieve operating revenue of 44 billion yuan or more, and total profit of 3.5 billion yuan or more. While achieving operational targets, employee compensation is linked to enterprise economic performance and labor productivity in the same direction. Looking back at the price trend of Pr-Nd oxide in H1, SMM data show that it started the year at 609,000 yuan/mt, then hit a H1 high of 890,000 yuan/mt by the month-end of February, marking a cumulative increase of up to 46.7% from the beginning of the year. The core driver came from the supply side: spot Pr-Nd oxide remained tight, futures surged sharply, suppliers held back from selling amid strong bullish sentiment, and metals enterprises were stockpiling ahead of holidays, all of which pushed prices up rapidly. At the same time, disruptions in Myanmar ore supply, domestic separation plants resuming production slower than expectations, and boosted market sentiment formed a combined effect of "undersupply + bullish holdback." However, during March-April, affected by bearish supply-side news and lackluster demand from end-user traditional sectors, the Pr-Nd oxide price quickly pulled back to around 700,000 yuan/mt. That said, the rise in China Northern Rare Earth's concentrate prices in April, supply support from production halts at separation plants, and the release of export orders under the export control extension window jointly drove prices to rebound slightly. Starting in May, the downstream gradually entered the off-season, and purchasing became more cautious. It was not until late June that the Pr-Nd oxide price was boosted again by factors including the official implementation of the Mineral Resources Law Implementation Regulations, which designates rare earths as strategic minerals, and production cuts at scrap recycling enterprises due to tax invoice issues, rebounding to 7.425 billion yuan/mt on June 30. According to SMM quotes, as of July 14, the average price of Pr-Nd oxide was 762,500 yuan/mt, down 0.33% from the previous trading day. Currently, influenced by the intense tug-of-war between upstream and downstream, the oxide market is experiencing significant price fluctuations, while the metals market is relatively sluggish in terms of inquiries, with suppliers holding their quotes relatively firm and showing no obvious adjustments. In the short term, as some raw ore separation and scrap recycling plants undergo production cuts and suspensions, oxide suppliers' willingness to sell at low prices is weak, which is expected to drive Pr-Nd product prices to drift higher. Recommended reading:

SMM Nickel July 14 News: Macro and Market News: (1) The US will blockade Iranian ports starting at 4:00 a.m. on the 15th; Trump: Will impose a 20% fee on cargo shipments; May take over management of the Strait of Hormuz in the future. (2) US Fed Governor Waller: If core inflation posts another hot reading this week, the FOMC will have to consider tightening monetary policy in the near term. Spot Market: On July 14, SMM #1 refined nickel price increased by 1,200 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 2,100 yuan/mt, down 50 yuan/mt from the previous trading day, while domestically mainstream electrodeposited nickel brands ranged between -300-500 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2609) surged during the night session before consolidating in the morning session, closing the morning session at 129,250 yuan/mt, up 0.43%. Over the weekend, the US-Iran conflict took another unexpected turn, with synchronized rises in the US dollar and crude oil weighing on metals. However, Indonesia's Ministry of Energy and Mineral Resources officially announced on July 10 that it would not raise the overall national nickel mining production quota, with any quota increases to be very limited and only granted through a strict, special approval channel for local smelters facing severe raw material supply shortages. In the short term, nickel prices may see a rebound, with the most-traded SHFE nickel contract expected to trade within a range of 127,000-133,000 yuan/mt.

[7.14 Morning Meeting Minutes] On the 12th local time, US President Trump said the US carried out “heavy strikes” on Iran the night before. Regarding the navigational status of the Strait of Hormuz, there are disagreements among various parties. Iran’s Persian Gulf Strait Authority posted on social media on the 12th, stating that the Strait of Hormuz is currently impassable. Trump, however, said, “As far as the US is concerned, the Strait of Hormuz is still open.” The most-traded SHFE nickel 2609 contract edged down in early trading, closing at 128,030 yuan/mt by the end of the early session, up 0.02%. Over the weekend, the US-Iran conflict took another turn. The simultaneous rise of the US dollar and crude oil weighed on metals, but Indonesia’s Ministry of Energy and Mineral Resources officially announced on July 10 that it will no longer raise the national nickel ore mining production quota overall. The increase will be very limited, with strict exception approval channels set only for domestic smelters facing severe raw material supply shortages. In the short term, nickel prices may rebound, with the most-traded SHFE nickel contract trading in a range of 127,000-133,000 yuan/mt.

SMM Nickel, July 13: Macro and market news: (1) On the 12th local time, US President Trump said the US had launched a "heavy strike" against Iran the previous night. There were conflicting statements about the navigation status of the Strait of Hormuz. The Iranian Ports and Maritime Organization of the Persian Gulf posted on social media on the 12th that the Strait of Hormuz was currently impassable. Trump, however, said, "As far as the United States is concerned, the Strait of Hormuz remains open." (2) Premier Li Qiang presided over a State Council executive meeting to hear a report on the progress of building a digital China and to study the cultivation of emerging pillar industries. Spot market: On July 13, SMM #1 refined nickel price fell by 250 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 2,150 yuan/mt, down 100 yuan/mt from the previous trading day, while domestic mainstream brand electrodeposited nickel ranged from -300 to 500 yuan/mt. Futures market: The most-traded SHFE nickel 2609 contract edged down in the morning session, closing at 128,030 yuan/mt as of the morning close, up 0.02%. Over the weekend, the US-Iran conflict took another turn, with the dollar and crude oil rising in tandem, weighing on metals. However, Indonesia's Ministry of Energy and Mineral Resources officially announced on July 10 that it would no longer raise the national nickel ore mining production quota across the board, and any increase in quotas would be very limited, with a strict special approval channel set up only for local smelters facing severe raw material shortages. In the short term, nickel prices could rebound, with the most-traded SHFE nickel contract price expected to trade in a range of 127,000-133,000 yuan/mt.

The Economic Times of India reported on July 2nd that Adani Group and Abu Dhabi International Holdings (IHC) plan to jointly invest $11.5 billion over the next few years, through a combination of debt and equity, to build a new aluminum smelter in Odisha with an annual capacity of over 2 million tons. This project is expected to increase India's total aluminum production capacity by nearly 50%. The Odisha plant will be an integrated production base encompassing smelting and refining processes. Adani will independently mine bauxite, produce alumina, and further process it into metallic aluminum. India has abundant mineral resources, but the development of its domestic metal industry has been hampered for many years due to factors including: protests that have stalled mining operations and new factory construction; cautious government approvals at all levels, coupled with court rulings, which have resulted in delays or even cancellations of multi-billion dollar projects.

To implement the work plan of the Party Committee of Chinalco Corporation and in accordance with the "Five Ones" series of activities of the Party Committee of Chinalco International Trading Co., Ltd., Hong Kong International Trading Co., Ltd. recently held a special exchange and discussion meeting entitled "Aluminum Embarks on a New Journey". All employees actively participated and spoke enthusiastically, focusing on the theme of "Making Good Use of Four Methodologies and Striving Forward in the 15th Five-Year Plan", and conducting in-depth discussions on key issues such as Hong Kong International Trading Co., Ltd.'s annual operating goals and high-quality development during the 15th Five-Year Plan period. The discussions sparked new ideas, gathered the wisdom of all employees, and unified their thinking. Faced with the current complex market situation, everyone agreed that it is essential to vigorously promote the spirit of "gratitude, loyalty, dedication, and responsibility" of Chinalco International Trading, actively respond to the challenges brought about by operational reforms, fully leverage the market advantages of Hong Kong International Trading and the offshore functions of the overseas platform, and through "systematic thinking, systemic operations, institutional and process support, and digital empowerment," cooperate across units and across branches of operations, complement each other's strengths, create synergistic effects, take initiative and make progress, accelerate business model innovation, and strive to build Hong Kong International Trading into a trading window for Chinalco International Trading to the bulk commodity market and a frontier for participating in the global allocation of mineral resources, so as to better serve the development of Chinalco's overseas business.

Recently, the Mineral Resources Exploration Center successfully won the bid for the Yuanzhuang bauxite prospecting project in Yichuan County, Henan Province. This project, a provincial-level geological exploration project for 2026, aims to preliminarily determine the metallogenic geological conditions, ore body characteristics, and ore processing and beneficiation technical properties of the bauxite deposit through geological surveying, geophysical exploration, trenching, and drilling. It also seeks to understand mining technical conditions and estimate the inferred bauxite resources, providing a basis for further detailed exploration. This successful bid is an important manifestation of the Mineral Resources Exploration Center's active response to the national strategy for breakthroughs in mineral exploration and its fulfillment of its public-interest geological exploration functions. Moving forward, the Center will leverage this project to strengthen its work responsibilities, strictly adhere to relevant standards and design requirements, and strive to complete the prospecting task efficiently and effectively, aiming to submit high-quality exploration results and contribute to advancing the new round of strategic breakthroughs in mineral exploration.

Indonesia has officially launched its B50 biodiesel mandate, increasing the biodiesel blending ratio to 50% as part of its strategy to strengthen energy security and reduce reliance on imported fuels. The Ministry of Energy and Mineral Resources (ESDM) estimates the program will save around IDR170 trillion in foreign exchange, increase the palm oil industry's added value to IDR23.49 trillion, create approximately 2.1 million jobs, and reduce CO₂ emissions by 44.46 million mt compared with conventional diesel. Annual biodiesel demand is projected at 16.7–18 million kL, requiring 15.2–16.3 million mt of crude palm oil (CPO). ESDM added that B50 has passed technical tests across multiple transport and industrial sectors and is ready for nationwide implementation.

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) said there will be no broad increase in national nickel production quotas, except for limited additions to support smelters that still face raw material shortages. Director General of Minerals and Coal Tri Winarno said any additional allocation would be relatively small, as the government aims to prevent excessive supply in the global market and avoid further pressure on nickel prices. Mining companies may submit RKAB revision applications until July 31, 2026, in line with Ministerial Regulation No. 17/2025. However, ESDM stressed that all proposals will undergo detailed review and will not be automatically approved.

On June 17, 2026, the 2026 SMM (3rd) ASEAN Automotive Supply Chain Conference , organized by Shanghai Metals Market (SMM), successfully wrapped up at the Hyatt Regency Bangkok Suvarnabhumi Airport in Bangkok, Thailand! This conference serves as an annual gathering of Southeast Asia's auto industry, bringing together 400+ delegates, 40+ speakers, 15+ partners and 15+ exhibitors from 15+ countries. Conference Background The Southeast Asian EV industry is at a strategic crossroads. Thailand's "30/30" policy is driving adoption, with EV penetration projected to near 15% by 2025. Indonesia is building a full battery chain using its nickel resources, while Vietnam's market potential grows. Amidst supply chain restructuring and technological competition, strategic action is key. The 3rd SMM Asean Automotive Supply Chain Summit 2026 is designed to empower businesses by focusing on: Unlocking NEV Potential: Analyzing ASEAN's role as a production/export hub and examining OEM technology roadmaps. Bridging the Supply Chain: Leveraging SMM's platform to integrate resources and facilitate deals. Establishing a Price Benchmark: Promoting the use of SMM Southeast Asia metals price assessments in procurement. We believe in turning consensus into action. Join us in Bangkok in 2026 to transform strategic blueprints into tangible advantages. 》Click to Watch the Conference Live Video 》Click to View the Conference Photo Live Stream June 16 Main Forum Opening Address Speaker: Adam Fan, Chairman of SMM Opening Keynote: Thailand EV Outlook 2026 Guest Speaker: Dr. Yossapong Laoonual, Head of Mobility & Vehicle Technology Research Center (MOVE), King Mongkut’s University of Technology Thonburi (KMUTT) Dr. Yossapong Laoonual noted that the ownership of battery electric vehicle (BEV) models is expected to surpass that of hybrid models in the medium and long term. Thailand’s BEV penetration rate will also rise steadily, supported by well-developed charging infrastructure. Data shows that the number of DC charging piles in Thailand has continued to grow, with installations already exceeding the government’s planned phased targets. The country’s 2030 charging pile target is 12,000 units, and multiple supporting regulations for motor vehicles have already been implemented locally. Local planning stipulates that each pile should serve 10-15 BEVs. Compared with markets outside China, where each pile in Europe serves fewer than 15 BEVs on average and in China fewer than 10, Thailand currently faces an imbalanced vehicle-to-pile ratio and still requires the large-scale addition of new charging piles. Thailand’s charging piles are primarily located at gas stations, with shopping malls and office buildings as secondary deployment sites. Local gas stations feature diverse commercial formats, offering excellent conditions for setting up charging stations. However, range anxiety remains widespread among consumers, and charging facilities along highways need to be further improved to alleviate concerns about recharging on the road. Opening Keynote: Southeast Asia’s New Automotive Ambition:Can Industry Players Successfully Navigate Transformation Amid Challenges? Guest Speaker: Krzysztof Tokarz, Chairman of the Automotive Working Group at TEBA, Founder of Auteneo He stated that there were four core strategic challenges in the electrification transformation of Southeast Asian automakers: First, a shortage of professional talent, with undersupply of high-quality talent in the EV and software fields, fierce competition for industry talent, and enterprises needing to plan for talent cultivation and retention; Second, cross-cultural coordination difficulties: significant differences in working models among Chinese, Japanese, Korean, European, American, and local enterprises, which easily led to issues such as lack of trust and poor cooperation; Third, complex and changing regional regulations: fragmented regulatory systems across Southeast Asian countries, with a fast pace of policy updates over the past year or more, placing high demands on enterprises' policy adaptation capabilities; Fourth, profitability pressure, as electrification reshaped the pricing system, with many automakers experiencing simultaneous contraction in revenue and profit margins, necessitating the exploration of long-term profitable models. Overall, he believed that while he currently maintained a cautiously optimistic attitude towards the development of industry technology and products, the aforementioned challenges still urgently needed to be addressed. Panel Discussion: Leadership Dialogue: East Asian Titans' "Southeast Asian Chessboard" Moderator: David Huang, The Head of Strategy, Marketing and Business Development, Forvia China Panelists: Dr. Yossapong Laoonual, Honorary Chairman and Advisors, Electric Vehicle Association of Thailand (EVAT) Suphot Sukphisarn, Honorary Chairman, Auto Parts Industry Club (APIC), The Federation of Thai Industries (FTI), Deputy Secretary General, Thai Auto-Parts Manufacturers Association (TAPMA） Krzysztof Tokarz, Chairman of the Automotive Working Group at TEBA, Founder of Auteneo Dr. Viroj Patcharawatanakul, Chief Marketing Officer (CMO), AAPICO Hitech PCL. The panelists noted that ASEAN countries have distinct industrial advantages: Malaysia has ample electronic factory resources, Indonesia possesses mineral resources needed for battery production, and Vietnam offers comprehensive labor incentive policies. To fully leverage each country's locational appeal, overall integrated planning is required. The ASEAN NEV market is expanding rapidly overall, with the regional EV penetration rate more than doubling. Thailand and Vietnam have seen impressive growth in XEV production and sales. Local vehicle production capacity remains stable, and Chinese new energy brands such as BYD, MG, and Great Wall have established a presence in Thailand, driving up demand for new energy parts supply. Thailand has a well-established multi-tier parts supply system: 27 vehicle manufacturers, 500 Tier 1 suppliers, and 1,800 Tier 2 and Tier 3 parts producers. Traditional mechanical processing industries like stamping, injection molding, rubber processing, machining, casting and forging, and assembly have a solid foundation, with huge annual parts capacity, providing the manufacturing capability to support new energy parts production. Keynote Speech: Navigating Automotive Disruption in Southeast Asia Guest Speaker: Timothy Wong, Principal, Roland Berger Roland Berger noted that AI-driven automation continues to advance and autonomous driving is developing steadily. It is expected that by 2040, autonomous driving will still struggle to become mainstream. However, AI technology has already disrupted the automotive industry, becoming a core driving force for enterprises to build differentiated advantages, enhance competitiveness, and innovate business models. The automotive industry is currently undergoing comprehensive disruptive changes, mainly in five dimensions: First, the automotive supply chain value chain is undergoing fundamental transformation, with vehicles and core parts upgrading toward electrification and electronics. Industry enterprises urgently need to adjust their product structures and proactively position themselves in emerging tracks; passively responding to market changes will entail significant risks. Second, the nature of automotive products is being reshaped by technology, shifting from traditional mechanical vehicles to software-defined vehicles. Sole mechanical manufacturing capabilities can no longer meet development needs; enterprises must build diversified cooperation ecosystems involving semiconductors, software, and sensors to cultivate new industrial capabilities. Third, the consumer market is undergoing significant iteration, with consumer car purchase preferences gradually tilting toward emerging brands, and industry competition continuing to intensify. Fourth, the pace of market iteration has greatly accelerated. Compared with the model update pace of once every few years by traditional automakers, Chinese brands iterate at a much faster pace, forcing the supply chain toward agile transformation and adaptation to rapidly changing vehicle specifications. Fifth, the aftersales distribution model is being disrupted, with traditional parts revenue being impacted by the growth of EVs. New direct-to-consumer models are emerging, requiring enterprises to restructure their distribution networks and expand aftersales services related to power batteries and electrification. Overall, all industry participants must proactively face transformation risks, actively transform and strategically restructure supply chains, vigorously explore new clients and deploy new businesses, abandon passive thinking that clings to existing models, and proactively plan future business development directions, so as to continuously maintain market competitiveness. Keynote Speech: Moving Beyond Negotiation: Fostering a New Framework for Southeast Asian Supply Chain Collaboration Based on the SMM Price Index Guest Speaker: Sing Yao, Director of Steel Business Unit, SMM Information & Technology Co., Ltd. She noted that Southeast Asia as a whole exhibits low per capita automobile ownership, limited NEV penetration, and a large young population, which holds enormous incremental market potential. This vast blue ocean is attracting leading Chinese NEV manufacturers to accelerate their footprint in the region. At the same time, however, Southeast Asian auto parts are highly dependent on imports, and the industry chain has long faced two major pain points: procurement difficulties and disorderly pricing. The launch of the SMM Southeast Asia Price Index may open up a new path for collaborative development of the local automotive supply chain. Low Per Capita Automobile Ownership, Limited NEV Penetration, and Large Young Population Create Vast Market Opportunities for Automakers According to SMM, in recent years, Southeast Asia’s automotive industry chain has shown remarkable resilience, with regional automobile production growing by 24.1% from 2020 to 2022. Although 2024 saw a cyclical decline for the first time due to global economic sluggishness, the decline in production and sales in Thailand and the broader Southeast Asian market has narrowed in 2025, underscoring the self-repair capability of the regional supply chain. As the region’s core hub, Thailand continues to dominate Southeast Asia’s automotive industry landscape with a capacity share of over 40%. In the short term, Thailand will maintain its position as a regional production center and export base, but its long-term competitive advantages are facing structural challenges: the sustained contraction of local capacity and the upgrading of neighboring countries’ industry chains are compelling it to accelerate technological transformation and supply chain restructuring. Driven by the immense allure of this industry “blue ocean,” leading Chinese NEV manufacturers are accelerating their expansion into the Southeast Asian automotive market. Keynote Speech:Baowu JFE Southeast Asia Strategy Sharing Guest Speaker: Liang Chen, Vice General Manager, Baowu Jiefuyi Special Steel Co., Ltd. He that overall steel production in Southeast Asia is declining, but the penetration rate of new energy electric vehicles (EVs) is surging: Thailand’s EV-related demand is up 80% YoY, while Indonesia’s demand has experienced a multiple-fold rise, with subsequent growth potential continuing to be released. Local NEV manufacturers previously purchased Japanese steel, but are gradually switching suppliers now, driven by industry competition and cost pressure. This also represents a core opportunity for the company to promote its supporting supply services. Leadership Panel: The Steel vs. Aluminum Debate and Cost Challenges Moderator: Michelle Leung, Head of Asia Metals and Mining, sustainability, Bloomberg LP Panelists: Thanakorn Thangwanichkapong, Director of Asia Operations, Maxion Wheels Martin Dilly, Southeast Asia Area Sales Director, Bureau Veritas The panelists noted that multiple disruptions, including the situation in the Strait of Hormuz and national tariff adjustments, have moved beyond short-term impact and are driving the restructuring of the entire steel and aluminum industry chain, with the structural transformation of the aluminum industry being particularly pronounced. Global supply chain vulnerability continues to intensify, and upward cost pressure on the industry has increased. Tariff barriers are reshaping the global trade landscape, and market competition is becoming increasingly fierce. The implementation of industrial localization has accelerated, but the pace of progress in Southeast Asia has seen a slowdown. Overall, only enterprises that possess both flexible logistics and procurement capabilities and a robust compliance management system can gain an advantage amid the industry transformation. Keynote Speech: Analysis of Southeast Asia's Secondary Aluminum Market and Price Trends Guest Speaker: Wong Yan Ling, Senior Aluminum Analyst, SMM Information & Technology Co., Ltd. She noted that Southeast Asia has become one of the fastest-growing secondary aluminum markets globally, and the worldwide competition for scrap resources is continuously reshaping the regional supply landscape. As resource protection policies are progressively implemented across various countries and regional manufacturing demand steadily expands, ASEAN countries are expected to further consolidate their core position in the global secondary aluminum industry chain. Regarding secondary aluminum price trends in H2 2026, SMM analysis suggests that weak seasonal demand in Southeast Asia may suppress the upside room for secondary aluminum prices, while the geopolitical situation in the Middle East remains a key variable affecting market trends. If shipping through the Strait of Hormuz returns to normal, cost pressures from logistics could ease. However, persistently tight scrap supply coupled with potential logistics disruptions may still drive up regional secondary aluminum prices. Specialized Seminar: Co-building a Resilient Automotive Materials Supply Chain for Southeast Asia Moderator: Sing Yao, Director of Steel Business Unit, SMM Information & Technology Co., Ltd. Panelists: Zongyan Fu, Purchasing Manager, Changan Auto Southeast Asia Co., Ltd. Weijiang Xue, Chief Engineer of Product R&D, Jiangsu Yonggang Group Co.,Ltd. Hui Yuan, General Manager, Tianjin Dewy Metal Surface Treatment Co., Ltd. Yi Huang, Deputy General Manager, Guangdong Superband Precision Industry Co.，Ltd. Thanakorn Thangwanichkapong, Director of Asia Operations, Maxion Wheels Hongwei Liu, General Manager, BYH NEW TECHNOLOGY CO., LTD. Saurabh Sharma, Sr General Manager & Executive Director, Hero Motors Thai Ltd. Jun Zou, Overseas Region Head, Marketing, Management Office, Baowu Jiefuyi Special Steel Co., Ltd. HaiBin Jia, Deputy Marketing Director, Beijing Jianlong Heavy Industry Group Co., Ltd. The panelists engaged in in-depth exchanges, drawing from their own business practices, focusing on the core topic of deep development in the Southeast Asian automotive industry. They focused on enterprises' current business layouts, operating status, and development trends in the Southeast Asian automotive market, and deeply analyzed core pain points and challenges such as supply chain adaptation, stable supply, and logistics support in the process of going global. At the same time, they shared detailed experiences regarding common challenges faced by enterprises going global, including localization certification, compliance system adaptation in and outside China, and alignment of policy standards. They also discussed core paths for enterprises to anticipate market changes, precisely allocate industrial resources, and quickly adapt to regional market rules and industry demands, focusing on industry trends. Furthermore, focusing on supply-demand coordinated development, they elaborated on their expectations for future cooperation models, collaboration mechanisms, and partnership needs with Chinese material suppliers. As buyers, they also clarified the types and directions of high-quality Southeast Asian clients they plan to prioritize for connection and cooperation, providing practical ideas and references for precise supply-demand matching and deep cultivation of the Southeast Asian automotive market for Chinese enterprises going global. Day 2: June 17 Keynote Speech: Analysis and Outlook of the Supply Chain in the Southeast Asian New Energy Market Speaker: Jena Wang, New Energy Consulting Project Manager, SMM Information & Technology Co., Ltd. She stated that driven by the rapid growth of the Southeast Asian NEV market, several automakers are accelerating their localization strategies. Battery demand in each country will also increase rapidly, with the region's total battery demand expected to grow by about ten times from 2025 to 2030, reaching approximately 201 GWh. However, it is worth noting that currently, Southeast Asia faces issues with low localization rates, significant structural gaps, and heavy import dependence for cathode materials and motor components. In Southeast Asia, the supply of local cathode materials and key motor components cannot meet demand, and the low localization rate and large capacity gaps have become key bottlenecks restricting the development of the NEV industry chain in the region. Data indicates that China's global production share of key new energy raw materials—such as batteries, cathode materials, lithium chemicals, and rare earth permanent magnets—generally exceeds 70%, with its capacity ranking first worldwide, demonstrating a significant advantage. In addition, she introduced the capacity distribution and industrialisation progress of key materials in the new energy markets of core Southeast Asian countries. Vietnam: Local automaker VinFast is boosting rapid development of the entire vehicle and upstream/downstream supporting industry chain. Thailand: As a core hub for automotive manufacturing and export in Southeast Asia, it boasts a relatively complete supporting system for motor and electric drive-related industries. Malaysia: It possesses a mature automotive industry foundation, but its local supporting capability for the three electric systems is insufficient; local policies focus on supporting vehicle assembly and regional distribution operations. Indonesia: With abundant nickel resources, it holds a pronounced competitive edge in the battery raw material industry. Overall, SMM believes that the capacity for core new energy components in Southeast Asia is relatively small. National policies are promoting localisation and industrial upgrading, leaving significant room for supply chain development. Leadership Panel: Supply Chain Security and Opportunities in Southeast Asia Moderator: Peter Klöpfer, Senior Manager Automotive Business Unit, RUTRONIK Electronics Worldwide Panelists: Akshay Prasad, Principal, Arthur D. Little SEA Alex Zhan, Head, ZF LIFETEC Thailand Asst.Prof.Uthane Supatti Ph.D., Head of the Power Electronics Applications and Energy Management (PEEM) Research Unit, Faculty of Engineering at Sriracha, Kasetsart University, Thailand, Vice President, Electric Vehicle Association of Thailand (EVAT) The panelists discussed about core themes of the Southeast Asian automotive supply chain. First, they addressed the delivery timeline crisis caused by sudden supply shortages, the crisis of lacking transparency in the industry chain, the crisis of industry-wide collaboration barriers, and the crisis of trust failure between upstream and downstream players. They jointly explored systematic resolution strategies and elaborated on their respective countermeasures. Building on this, the on-site guests further discussed the Japanese industry chain and China’s domestic supply chain, analyzing the development opportunities, long-term prospects, and practical implementation logic of two-way opening, healthy competition and cooperation, and deep integration between the two. Leadership Panel: Capacity Coopetition and Customer Breakthrough: Winning the Southeast Asian Supply Chain Battle Moderator: Wacharapisuth Thannapong, Researcher, BCG (Bio-Circular-Green Economy Policy) Research Team, Thailand Development Research Institute (TDRI) Panelists: MARK BRIAN PIRIE, Senior Vice President Purchasing & Supplier Management Asia Pacific, Executive Board Member, Schaeffler Frank Yu, General Manager of the Automotive Rubber & Metal Components Business Unit and Thailand Branch, Shanghai Baolong Automotive Corporation The panelists assessed the overheating of three-electric system (battery, motor, electronic control) capacity in Southeast Asia. They noted that overcapacity in three-electric systems is a global trend. The capacity now deployed in Southeast Asia and Thailand already exceeds confirmed demand, intensifying market uncertainty and heightening investment concerns. Risks are structurally differentiated: Tier-1 suppliers are more conservative and risk-averse compared to China’s domestic vehicle makers that are rapidly going global. There is localized overcapacity in basic e-drive parts and low-difficulty electronic components, while supply bottlenecks persist for key items such as high-performance automotive-grade semiconductors, advanced materials, and electrical steel. This is also a core motivation for Chinese suppliers setting up in Southeast Asia. Moreover, Southeast Asia’s geographical advantages are prominent, and mine development in Australia is progressing rapidly. Many mines are set to commence production by Q3 next year. The core contradiction in the industry is not simply overall surplus, but a mismatch between the regional allocation of capacity, the technologies adopted, and actual market demand. Additionally, the guests noted that the core challenges in Southeast Asia and Thailand revolve around three major issues: regional adaptation, supply chain gaps, and industrial competition and collaboration. Enterprises must independently weigh risks and expansion scales based on their own supply chain conditions to find a development balance suited to their needs. Meanwhile, to adapt to the unique environment of Southeast Asia—characterized by high temperatures, high humidity, floods, complex road conditions, and underdeveloped charging infrastructure—the EV technologies originally designed for the Chinese and European markets must undergo localized R&D and verification. This process ensures the reliability of batteries, electronic controls, and lubrication systems, as well as overall vehicle durability. It is recommended that Tier 1 suppliers and upstream partners proactively collaborate in depth with OEM design teams. Even for domestically mature production car models going global in Southeast Asia, it is essential to iterate and optimize products by leveraging local expansion opportunities while drawing on the cost, process, and quality control expertise gained from large-scale domestic production. Leadership Panel: Techno-Economic Analysis and Strategic Pathways for Battery Material Localization in Southeast Asias Moderator: Jay Yu, Senior director, SMM Information & Technology Co., Ltd. Panelists: Brian, Sales Director for the Electrolyte Division in Japan, South Korea, and Southeast Asia, TINCI Materials Max Miao, Director, SEVB Thailand Feng Hao, Southeast Asia Marketing Director, Hefei Guoxuan High-Tech Power Energy Co., Ltd. The panelists noted that amid the restructuring of global manufacturing, Southeast Asia’s lithium battery industry faces both challenges and opportunities. Enterprises are following downstream OEM clients in going global, establishing nearby supply systems centered on customer needs. Three key operational aspects require consideration. First, at the policy level, Southeast Asia’s lithium battery industry must supply both the local market and target exports to Europe and the U.S. Regional policy changes have far-reaching impacts, requiring enterprises to conduct ongoing in-depth analysis and implement corresponding response strategies. Second, in terms of human and cultural factors, local traditions and family values are distinct, necessitating flexible management that fully respects local customs, cares for local employees, and stabilizes production teams. Third, regarding the industry chain, the region’s upstream lithium battery materials are notably underdeveloped. Key raw materials such as high-purity solvents, lithium chemicals, and functional additives currently rely heavily on imports from China, Japan, and South Korea. The establishment and improvement of local upstream and downstream supply capabilities urgently need to be addressed, making this a key focus for future enterprise deployment. In addition, they also mentioned that in H2 this year, NEV-related subsidies in Southeast Asia may be gradually phased out, and Thailand's EV 4.0 policy and the year-end tax rebate policy will also undergo adjustments. Drawing on China's NEV development experience, local automakers will gradually break free from reliance on policy subsidies and instead compete in the market by leveraging product strength and market-based pricing. This year, Thailand's NEV sales are conservatively estimated to reach 120,000 units, with a potential to hit 160,000 units. Compared with Japanese car models, Chinese NEV models have ample room for price adjustment, offering a clear advantage. Currently, battery enterprises are actively assisting automakers in expanding markets and securing more orders, while also suggesting that automakers moderately raise vehicle selling prices. The industry generally believes that automakers will most likely offset the operational pressure from subsidy reductions through price adjustments in the future. Procurement Matchmaking Meeting >Click to view more highlights from the event Check-in & Networking This is the end of the 2026 SMM (3rd) ASEAN Automotive Supply Chain Conference . Thank you for the support of all industry peers. See you next year!