The U.S. Department of Energy has selected nine projects for up to $162 million in potential funding to advance recovery of critical materials including copper from industrial feedstocks, byproducts and waste streams. Copper-related selections include Still Bright’s ambient-temperature electrochemical copper extraction process and SiTration’s technology for selectively recovering copper and other metals from complex mining, refining, recycling and industrial waste streams. The selections remain subject to award negotiations.

Sichuan Guangrong Aluminum Co., Ltd. is a modern enterprise integrating R&D, production, and sales of high-end architectural and industrial aluminum extrusions. Currently, the company has 17 extrusion production lines, having added 5 this year. At this stage, all workshops have fully completed preparatory work such as equipment maintenance, personnel deployment, and process optimization, and are now refining the production schedule around the annual production target of 45,000 mt, while making every effort to advance production operations.

[SMM Flash] The Democratic Republic of Congo (DRC) is becoming an increasingly important arena in the US-China competition for critical minerals, with the country holding significant resources of cobalt, copper, lithium, coltan, tantalum, tin, tungsten and other strategic commodities. China has built a strong position across the DRC's mining, processing and refining value chain, while the US is seeking to diversify supply through infrastructure investment, diplomacy and direct participation in mining assets. A key component of the US strategy is the Lobito Corridor, supported by a $553 million US Development Finance Corporation loan to rehabilitate about 1,300 km of railway linking the DRC to Angola's Atlantic port. The US-backed Orion Critical Mineral Consortium has also proposed acquiring a 40% stake in Glencore's Mutanda and Kamoto assets, with the transaction implying a combined enterprise value of about $9 billion and providing Orion rights to direct its share of production to nominated buyers. These moves could gradually diversify DRC mineral trade routes and customers, although China's established processing capacity and infrastructure footprint mean that a significant shift in the supply chain is unlikely to happen quickly.

[SMM Analysis: From Aurubis to Nexans and Wieland: Why Are European and US Copper Companies Expanding Recycling Capacity?]European and US copper companies have accelerated investment in recycled raw materials. Copper scrap is therefore becoming more than a supplement to primary copper. It is increasingly viewed as a strategic resource that can improve raw material security, diversify earnings and reduce product carbon footprints.

[SMM Analysis: From Aurubis to Nexans and Wieland, Why Are European and American Copper Companies Collectively Ramping Up Recycled Raw Materials?] In recent years, the copper industry in Europe and the United States has significantly accelerated its push into recycled raw materials, and participants are no longer limited to traditional secondary copper smelters. From integrated smelters such as Aurubis, Boliden, and Glencore to wire-and-cable and copper-processing enterprises such as Nexans and Wieland, different segments of the industry are simultaneously strengthening their capabilities in copper scrap recycling, pretreatment, smelting, and internal recycling. This means the logic behind the development of the secondary copper industry in Europe and the United States is shifting: recycled raw materials are no longer merely a supplement to primary copper supply, but are gradually becoming an important strategic resource for companies to ensure raw material security, stabilize profit sources, and reduce the carbon footprint of their products.

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

SMM News on August 15: Metals market: Overnight last Friday, base metals in the domestic market mostly rose. SHFE copper rose 0.49%; on a weekly basis, SHFE copper fell 0.31% for the week. SHFE aluminum was flat at 23,945 yuan/mt. SHFE lead fell 0.22%, SHFE zinc rose 0.41%, and SHFE tin rose 0.36%. SHFE nickel edged up 0.07%. In addition, the most-traded alumina futures contract fell 0.19%, while the most-traded cast aluminum contract rose 0.24%. Overnight last Friday, ferrous metals showed mixed performance. Stainless steel fell 0.49%, iron ore fell 0.35%, and rebar fell 0.03%. Hot-rolled coil rose 0.34%. Coking coal and coke: the most-traded coking coal contract rose 1.7%, and the most-traded coke contract rose 1.97%. Overnight last Friday, overseas metals: LME base metals all rose. LME copper rose 0.26%; on a weekly basis, LME copper extended gains for seven consecutive weeks, up 1.07% for the week. LME aluminum rose 0.22%. LME lead rose 0.26%. LME zinc rose 0.45%. LME tin rose 0.36%. LME nickel rose 0.3%. Overnight last Friday, precious metals : COMEX gold rose 0.26%; COMEX gold posted a fourth consecutive weekly gain, up 0.73% for the week. COMEX silver fell 0.26%; COMEX silver logged a second consecutive weekly gain, up 2.09% for the week. Overnight last Friday, the most-traded SHFE gold contract rose 0.6%; SHFE gold posted a fourth consecutive weekly gain, up 1.68% for the week. The most-traded SHFE silver contract rose 0.57%; SHFE silver extended gains for four consecutive weeks, up 3.45% for the week. As of 7:17 on August 15, overnight last Friday’s closing prices: Macro front China: [Central bank: Aggregate social financing rose by 2.225 trillion yuan in the first seven months; M2 in July was up 7.7% YoY] According to preliminary statistics from the central bank, in the first seven months of 2026, the cumulative increase in aggregate social financing totaled 2.225 trillion yuan, down 174 billion yuan from the same period last year. Among them, RMB loans to the real economy increased by 1.017 trillion yuan, an increase of 214 billion yuan less YoY; foreign-currency loans to the real economy (converted into RMB) increased by 169.4 billion yuan, an increase of 241.9 billion yuan more YoY; entrusted loans decreased by 81 billion yuan, a decrease of 12.1 billion yuan more YoY; trust loans decreased by 67.2 billion yuan, a decrease of 226.4 billion yuan more YoY; undiscounted bank acceptance bills decreased by 178.6 billion yuan, a decrease of 41 billion yuan less YoY; net financing of enterprise bonds was 252 billion yuan, 110 billion yuan more YoY; net financing of government bonds was 776 billion yuan, 115 billion yuan less YoY; and domestic equity financing by non-financial enterprises was 406.1 billion yuan, 184.7 billion yuan more YoY. In the first seven months, RMB loans increased by 10.38 trillion yuan. By sector, loans to households decreased by 827.1 billion yuan, of which short-term loans decreased by 928.1 billion yuan and medium- and long-term loans increased by 101 billion yuan; loans to enterprises and public institutions increased by 11 trillion yuan, of which short-term loans increased by 4.34 trillion yuan, medium- and long-term loans increased by 5.32 trillion yuan, and bill financing increased by 1.19 trillion yuan; loans to non-bank financial institutions decreased by 394.4 billion yuan. At the end of July, the outstanding balance of broad money (M2) was 355.51 trillion yuan, up 7.7% YoY. The outstanding balance of narrow money (M1) was 115.46 trillion yuan, up 4% YoY. The outstanding balance of currency in circulation (M0) was 14.82 trillion yuan, up 11.6% YoY. In the first seven months, net cash injection totaled 725.5 billion yuan. [Shanghai: Promoting Leading Industries Such as Integrated Circuits, Civil Aviation, Smart Vehicles, and High-End Equipment to Accumulate Strength and Gain Momentum] Today (August 14), Shanghai Municipal Party Secretary Chen Jining spent an entire day conducting a survey and presiding over a symposium in the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone. Chen Jining pointed out that the Lingang Special Area should always place advanced manufacturing in a prominent position and unswervingly enhance its capacity and core competitiveness. It should seize the opportunities of digitalization, intelligence, and green development, place greater emphasis on cultivating industrial ecosystems while ensuring project implementation, focus on cultivating industry leaders and high-growth enterprises, and focus on developing industrial platforms and improving service capabilities, thereby enhancing the resilience and stickiness of industrial development and promoting leading industries such as integrated circuits, civil aviation, smart vehicles, and high-end equipment to accumulate strength and gain momentum. It should leverage the advantage of abundant manufacturing scenarios, promote the digital and intelligent transformation of industry, increase the application of industrial robots, vertical models, and intelligent agents in key links such as production and manufacturing, and equipment operation and maintenance, and drive the systematic transformation of the entire process covering industrial design, pilot-scale validation, inspection and testing, and marketing and operations. It should optimize the business environment, provide better services for enterprises, and accelerate the cultivation of world-class enterprises. It should deepen the reform of the management system of development zones, and refine and improve reform plans around key links such as functional positioning, spatial integration, professional services, and assessment and evaluation. (Shanghai Release) On the US dollar: Last Friday, the US dollar index fell 0.32% overnight, closing at 99.64. On a weekly basis: the US dollar index rose on the week, up 0.04% for the week. US July retail sales released on Friday decreased 0.6% MoM, marking the largest decline in more than a year. Coupled with mild inflation data this week, market pricing for a US Fed rate hike in September collapsed further. The US dollar index fell. Under the triple blow of mild CPI on Wednesday, zero MoM growth in PPI on Thursday, and unexpectedly weak retail sales on Friday, the probability of a September rate hike plunged from 75% at the end of July to around 25%; CME FedWatch showed that 67% of traders were betting on rates being held steady in September. The focus of market pricing has shifted from "how many more rate hikes are needed" to "whether this round of rate hikes has ended".(Wallstreetcn) The US Department of Commerce announced on Friday that retail sales in July fell 0.6% MoM, the largest decline in more than a year, while market expectations were for slight growth. Core control group sales excluding automobiles, building materials, and gas stations fell 0.4%, the worst performance since January 2025. The University of Michigan's preliminary August Consumer Sentiment Index released on the same day was only 51, well below the expected 54.5.(Wallstreetcn) US consumer confidence fell for the first time in three months as households worried about deteriorating business conditions and rising inflation. According to survey data released by the University of Michigan on Friday, the preliminary August consumer sentiment index fell to 51, below the final July reading of 55.2. The median expectation among economists was 55. Consumers expect prices to rise 4.3% over the next year, edging up MoM and markedly above the level before the Iran conflict broke out in February. They also expect prices to rise at an annual rate of 3.3% over the next 5 to 10 years. After two consecutive months of improvement, consumer confidence in both the short- and long-term economic outlook deteriorated. Since the beginning of the year, changes in consumers' expectations for the labour market have been relatively small. The survey showed that consumers were increasingly worried about inflation, while concerns about unemployment declined. This survey covered responses collected from July 28 to August 10. During this period, the US national average gasoline price hovered above $4 per gallon. Another report released on Friday showed that US retail sales in July recorded their largest decline in over a year, as consumers cut back on automobile and online store purchases.(Jin10 Data App) US Fed's Goolsbee said he supported the decision to keep interest rates unchanged in July. He pointed out that the two most recent productivity data readings were disappointing, and if productivity continues to decline, the US Fed may need to reassess market expectations for artificial intelligence (AI). Goolsbee said the latest CPI data were encouraging, but more data are needed to make a judgment; continued consumption weakness is concerning, though the weakness in retail sales is currently only a single-month performance. At the same time, US GDP and the labour market were basically stable overall.(from Wallstreetcn App) According to CME "US Fed Watch": the probabilities for the US Fed in September are no change in interest rates (67.5%) and a cumulative 25-basis-point rate hike (32.5%). The probabilities for the US Fed in October are no change in interest rates (53.3%), a cumulative 25-basis-point rate hike (39.8%), and a cumulative 50-basis-point rate hike (6.8%).(Jin10 Data App) On the macro front: This week will see the release of China July total retail sales of consumer goods YoY, China July value added of industrial enterprises above designated size YoY, Canada July CPI MoM, US August New York Fed Manufacturing Index, US August NAHB Housing Market Index, UK ILO unemployment rate for the three months to June, UK July unemployment rate, UK July unemployment benefit claimant count, Germany August ZEW Economic Sentiment Index, Eurozone August ZEW Economic Sentiment Index, US weekly ADP employment change for the week ending August 1, US July total annualized housing starts, US July total building permits, US July import price index MoM, US July industrial output MoM, US July pending home sales index MoM, UK July CPI MoM, UK July retail price index MoM, Eurozone June seasonally adjusted current account, Eurozone July final CPI YoY, Eurozone July final CPI MoM, China July SWIFT RMB share in global payments, China 1-year loan prime rate for August 20, Australia July seasonally adjusted unemployment rate, Germany July PPI MoM, Switzerland July trade balance, UK August CBI industrial orders balance, US initial jobless claims for the week ending August 15, US August Philadelphia Fed Manufacturing Index, US July Conference Board Leading Indicators MoM, UK August GfK Consumer Confidence Index, Japan July core CPI YoY, UK July public sector net borrowing, UK July seasonally adjusted retail sales MoM, France August flash manufacturing PMI, Germany August flash manufacturing PMI, Eurozone August flash manufacturing PMI, UK August flash manufacturing PMI, UK August flash services PMI, Canada June retail sales MoM, US August flash S&P Global Manufacturing PMI, global flash services PMI, Eurozone August flash consumer confidence index, and other data. In addition, this week also requires attention: the National Bureau of Statistics (NBS) will release the monthly report on residential selling prices in 70 large and medium-sized cities; the State Council Information Office will hold a press conference on the performance of the national economy; European Central Bank President Lagarde will attend the "Global Economic Outlook" discussion at the World Economic Forum International Business Council (IBC) meeting; the US Fed will release the minutes of its monetary policy meeting; and Hang Seng Indexes will announce the Hang Seng Index Series Review results for Q2 2026. On the crude oil front: Last Friday, futures for both crude oils rose in overnight trading, with WTI crude oil futures up 1.42% and Brent crude oil futures up 2.01%. On a weekly basis: WTI crude oil futures rose for the week, up 5.4%; Brent crude oil futures closed higher for the week, up 6.31%. International crude oil prices rose, driven by a near standstill in traffic through the Strait of Hormuz. Two vessels were attacked in the Strait of Hormuz that day, and traffic came to a near standstill. The US said it could maintain a maritime blockade against Iran indefinitely, and Trump also said that the US would impose severe economic measures on Iran. Capital Economics estimates that current crude oil flows through the Strait of Hormuz are only about 4 million to 5 million barrels per day, far below pre-conflict levels. Dated Brent maintained a spot premium structure, indicating continued tightness in physical supply. Capacity at three of the world’s four major refining centers has been impaired, and surging refined product prices are being passed directly to end consumers. (Wall Street CN) Traders said that, with the Strait of Hormuz still largely closed, Asian refiners were seeking alternative supplies for deliveries later this year, and at least four Asian refiners purchased US crude this week. Both the US and Iran claim control of the Strait of Hormuz, and vessel traffic through the strait fell below the monthly average in the latter half of this week. With no sign that shipping through the strait will resume normal flows in the short term, tightening fuel supply will push up refining margins, prompting refiners to lock in crude inventories needed for the coming months from markets outside the Gulf region. South Korea’s GS Caltex purchased 2 million barrels of Mars crude from Shell and plans to take delivery in November. Traders said the cargo was priced at a premium of about $13 to $14 per barrel over the October Dubai benchmark price. Japan’s third-largest refiner Cosmo Energy Holdings bought Mars crude from Trafigura; Japan’s largest refiner ENEOS purchased 2 million barrels of WTI crude from Trafigura at a premium of more than $10 per barrel over the October WTI price and plans to take delivery in November. (Jin10 Data App) US Energy Information Administration (EIA): US petroleum production is expected to average 13.83 million barrels per day in August, compared with 13.82 million barrels per day in July; production is expected to average 13.77 million barrels per day in September. (Jin10 Data App) It is worth noting that, due to contract rollover, the September NYMEX New York crude oil futures will complete final floor trading at 2:30 on August 21 and final electronic trading at 5:00 a.m. Please pay attention to exchange announcements regarding expiration and contract rollover to manage risk. In addition, some trading platforms usually set the expiration time of US crude oil contracts one day earlier than the official NYMEX schedule, so please pay extra attention. Recommended Reading:

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

According to SMM research, the domestic lithium battery recycling market exhibited clear diverging trends in July 2026. During the month, recycled lithium carbonate output declined by 2% month-over-month. Recycled nickel sulfate and cobalt sulfate continued their year-long downtrend, with the weak performance persisting in July and no price recovery in sight.

On August 13, the SMM Imported Copper Concentrate Index (weekly) came in at -$175.37/dmt, down $1.46/dmt from -$173.91/dmt in the previous period. The payable indicator for 20% grade domestic trade ore was reported at 98.5%-99.5%. Spot market activity this week declined WoW, with some mines launching tenders. Spot transaction side, a trader sold 10,000 mt of Carmen at an index deduction of $25/dmt, for September shipment, QP: M+1/M+5, with the additional term that Ag below 20g is payable at 65%; a trader sold 10,000 mt of South American clean ore at an index deduction of $23/dmt, for October shipment, QP: M+1/M+5; a trader sold 10,000-20,000 mt of Erdenet at an index deduction of $20/dmt; two other traders offered clean ore at index deductions of $24-25/dmt, for shipment from September to October; in addition, market talk indicated that a trader sold copper concentrates to a smelter at a fixed level of -$180/dmt. Mine tender side, for the previously tendered September high-arsenic ore, the transaction price on the trader side was -$260/dmt, QP: M+1/M+4, with 0.6-1g gold not payable; tenders are underway for 10,000 mt of Mantoverde for September shipment and 10,000 mt of Timok for shipment from September to October, and for 10,000 mt each of September and October BVC; tender results remain unknown. At present, against the backdrop of continued declines in the imported copper concentrate index and further widening of spot transaction deductions, some smelters have become less willing to accept pricing at index deductions of $20/dmt or above and have begun to negotiate based on fixed TCs; suppliers, however, still prefer to quote on an index deduction basis. Divergence between buyers and sellers over pricing benchmarks and reasonable deduction levels has widened, and progress on spot transactions has turned more cautious overall. Cochilco recently lowered its 2026 Chilean copper production forecast to 5.27 million mt Cu, down 2.6% YoY, mainly due to lower grades at large mines in H1, maintenance, slower project ramp-ups, and operating constraints. From January to June 2026, China imported 4.2808 million mt of copper concentrates from Chile, down 8.26% YoY, with the import share falling to 29.3%; the supply contribution of Chilean material to the Chinese market weakened on a phased basis. However, most miners are maintaining their full-year production guidance, mainly counting on a recovery in H2 driven by the switch to higher-grade ore sections, completion of maintenance, and project ramp-ups. Expectations for the restart of First Quantum's Cobre Panamá copper mine have increased. Panama’s Minister of Commerce and Industry, Julio Moltó, recently visited Donoso, Omar Torrijos Herrera, and La Pintada, where he met with mine workers, local governments, and suppliers; the relevant recommendations will be submitted to an inter-agency committee for evaluation. The mine is currently authorized to process stockpiled ore and has supported around 3,200 direct jobs and more than 3,000 indirect jobs. As of end-June, First Quantum had processed 2.1 million mt of stockpiled ore and produced about 3,200 mt of contained copper, with the first shipment expected to take place this month. A molten material leak incident occurred at the converter (C-Furnace) of PT Smelting's copper smelter in Gresik, East Java. Currently, there is no clear expectation for when the damaged equipment can return to service, and repairs are expected to take at least several weeks. Due to low in-plant copper anode inventory, the smelting outage has directly affected metal production on the refining side. Copper cathode shipments are expected to be disrupted in the coming weeks, and the plant is negotiating delayed deliveries with clients. In terms of capacity, PT Smelting Gresik has smelting capacity to process approximately 1.3 million dmt of copper concentrates per year, and its refining side has copper cathode capacity of 342,000 mt/year. According to Freeport-McMoRan's annual report, in 2025 the plant produced 230,300 mt of copper anode and 207,200 mt of copper cathode; due to raw material supply disruptions and maintenance, these were significantly lower than the 398,200 mt of copper anode and 335,200 mt of copper cathode in 2024. On August 14, 2026, SMM recorded copper concentrate inventories at 11 ports totaling 770,000 mt in physical content, up 78,000 mt in physical content from August 7. The main increases came from Qingdao Port, Fangchenggang Port, and Yantai Port, with respective WoW increases of 30,000 mt, 20,000 mt, and 23,000 mt; the main decrease came from Nanjing Port, down 10,000 mt WoW.