[SMM Global Steel Enterprise Special Report] A Detailed Analysis of US "Steel King" Nucor: 100% Electric Arc Furnace Forging High Profits, Vertical Integration Mitigating Cost Fluctuations Nucor Corporation is a company incorporated in Delaware in 1958. The company and its subsidiaries are engaged in the manufacture of steel and steel products. It also produces and procures ferrous and non-ferrous metal materials, primarily for use in its steelmaking operations. Most of its operating facilities and clients are located in North America. Its operations include international trading and sales companies responsible for buying and selling steel and steel products manufactured by the company and others. Nucor is also the largest recycler in North America, using steel scrap as the primary raw material for producing steel and steel products. In 2025, it recycled approximately 20 million gross tons of steel scrap. Operating Performance Data source: Nucor Corporation Annual Report、SMM Reasons behind the performance changes: ① Decline in gross profit: The primary reason for the decline in gross profit in 2025 was the compression of profit margins in the steel products segment. Due to lower average selling prices, gross profits from the grating and decking, building systems, and rebar fabrication businesses under this segment all experienced significant declines. ② Steel mill segment growth: In contrast, gross profit in the steel mill segment increased, primarily driven by higher sales and improved steel industry spreads. ③ Investment expenditures: Over the past three years, Nucor invested approximately $9.73 billion in capital expenditures and acquisitions, aiming to expand its product portfolio and enhance operational flexibility. Segments, Major Products, and Marketing Nucor reports its results in three segments: the steel mills segment, the steel products segment, and the raw materials segment. The steel mills segment is Nucor's largest segment, accounting for 62% of the company's sales to external clients for the fiscal year ended 2025. It primarily sells its products to steel service centers, manufacturers, and fabricating enterprises located in the US, Canada, and Mexico. In 2025, the steel mills segment sold approximately 19,848 kt of products to external clients. Data source: Nucor Corporation Annual Report、SMM The Steel Products segment primarily produces high-value-added downstream construction and industrial components, holding leading positions across the U.S. in multiple sub-segments including steel joists, prefabricated metal buildings, and insulated metal panels. It accounted for 29% of the Company's net sales to external clients for the year ended 2025. In 2025, total sales of major products in the Steel Products segment were approximately 1.478 million mt, including approximately 658,000 mt of steel joists and joist girders, approximately 436,000 mt of steel deck, and approximately 384,000 mt of metal building systems. Although physical sales volume (tonnage) was far below that of the Steel Mills segment, the per-mt selling price and profit margin were much higher than those of basic steel, and the segment also ranked first in market share across the U.S. in multiple areas. Data source: Nucor Corporation Annual Report、SMM The Raw Materials segment is the cornerstone of Nucor's vertical integration strategy, primarily operated through its wholly-owned subsidiary The David J. Joseph Company (DJJ), and manages DRI production facilities in Louisiana and Trinidad. By blending DRI with steel scrap, it supports electric arc furnace (EAF) production of higher-grade sheets & plates while ensuring cost advantages and supply security of raw materials. It accounted for 9% of the Company's net sales to external clients for the year ended 2025. In 2025, approximately 20 million gross tons of steel scrap were recycled and processed. Data source: Nucor Corporation Annual Report、SMM Clients and Markets Data source: Nucor Corporation Annual Report、SMM Major Development Projects in Recent Years The vast majority (91%) of Nucor's capital was allocated to internal construction (CapEx), strengthening core competitiveness through technology upgrades (such as electric arc furnaces and micro mills); a small portion was used for strategic acquisitions to achieve "outward expansion" into high-margin downstream areas. Through acquisitions such as SWDP, the company quickly entered high-barrier, high-growth sub-segments including data centers and green energy, making its business structure more resilient to cyclical downturns. Data source: Nucor Corporation Annual Report、SMM Core Logic of Vertical Integration for Cost Reduction: Raw Material Supply Structure Data source: Nucor Corporation Annual Report、SMM Core Risk Factors The greatest risk facing Nucor is a combination of internal and external challenges — internally, cost fluctuations in steel scrap and energy; externally, the impact of low-priced imported steel resulting from global (especially China's) overcapacity. Specifically: 1. Core Industry Risks ① Severe global supply-demand imbalance: Global steel surplus capacity reached 704 million net mt in 2025 (8 times US annual production). It is expected to further increase to 795 million mt by 2027. ② Regional impact: China's annual production has exceeded 1 billion mt in each of the past 8 years, and Chinese steelmakers continue to invest in new capacity in Southeast Asia and Africa. ② Import shock: This surplus leads to a flood of low-priced steel into the US market, creating significant downward pressure on Nucor's product prices, sales, and profit margins. 2. Production Cost Risks ① Steel scrap price sensitivity: Nucor uses 100% electric arc furnaces (EAF), with steel scrap being the largest cost item. Steel scrap prices fluctuate significantly and are beyond Nucor's control. ② Supply chain uncertainty: Although Nucor has achieved a degree of self-sufficiency through its DRI plants and DJJ recycling system, pig iron and iron ore pellets still rely on international procurement, facing geopolitical risks (e.g., Ukraine, Russia, Brazil). 3. Operational Challenges ① Energy-intensive nature: Steelmaking relies on large amounts of electricity (for melting) and natural gas (for heating and DRI production). ② Cost pass-through: Energy prices are affected by demand, the regulatory environment, and transmission infrastructure (pipelines/power grid), and cost surges may erode profits. 4. Compliance and ESG Risks ① Emission reduction pressure: The steel industry faces intense scrutiny due to greenhouse gas (GHG) emissions. ② Policy risk: Although Nucor's emission intensity is far lower than its blast furnace peers, increasingly stringent environmental protection laws and regulations may increase capital expenditures or restrict operations at existing facilities. 5. End-Use Market Risks ① Industry cyclicality: The steel industry is highly correlated with the macro economy. ② End-use market fluctuations: Nucor's largest market is non-residential construction. If this sector (e.g., commercial offices, industrial facilities) contracts due to high interest rates or economic recession, it will directly impact Nucor's performance severely. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. 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SEG Solar is accelerating its vertical integration with a 5 GW ingot and wafer facility in Indonesia, with Phase II construction set for Q2 2026. Once operational, the site will complete an end-to-end manufacturing chain encompassing ingots, wafers, cells, and modules. Founded in 2021, the company has seen rapid growth, reporting cumulative global shipments of over 7.5 GW by the end of 2025. This integrated strategy is designed to provide a fully traceable, non-FEOC supply chain for the evolving global solar market.

Indian manufacturer Solex Energy signed an MoU with the Gujarat government to invest $420 million in a vertical integration project. The plan includes a 5 GW solar cell facility (2 GW + 3 GW phases) and a 10 GW BESS plant to complement its existing 4 GW module capacity. Solex is currently co-developing high-efficiency back-contact (BC) technology with Germany’s ISC Konstanz, targeting a 24.6% module efficiency. This expansion aligns with the company’s 2030 goal of reaching 10 GW of integrated capacity across the PV value chain to bolster India’s domestic energy ecosystem.

Tata Power's subsidiary, announced that it plans to invest up to 65 billion Indian rupees (equivalent to $685 million) to build a solar PV silicon ingot and wafer manufacturing plant in India. This investment project will help develop a total of 10GW of ingot-wafer manufacturing capacity, which will be carried out in two phases, with each phase achieving 5GW of capacity construction. The project is expected to bring multiple strategic advantages, such as seizing first-mover opportunities in the capacity-limited Chinese market, strengthening raw material supply security for downstream operations, enhancing profit margins through vertical integration, and generating considerable financial returns, with an estimated payback period of approximately five years.

[SMM Steel] Vietnam’s steel industry is becoming increasingly polarized in Q1 2026, with leading players consolidating market share. Hoa Phat Group led the construction steel segment with 36.06% share, followed by VNSTEEL at 12.92%, while smaller producers collectively held over 40% but remained highly fragmented. Export weakness has shifted competition toward the domestic market, intensifying pricing pressure. Large integrated players benefit from cost control and vertical integration, while export-oriented firms such as Hoa Sen Group and Nam Kim Steel face margin pressure amid rising trade barriers. The industry focus is shifting from volume expansion to cost efficiency and margin sustainability.

It has become a consensus that domestic demand for new energy vehicles will be under periodic pressure in 2026. However, the industry has not lost its growth momentum but is shifting from past expansion driven by pricing and policy to a growth model supported by products, structural optimization, and markets outside China. At the same time, the rise on the cost side is squeezing profit margins, making the issue of "growing but not profiting" increasingly visible.

[Siemens Partners with Vulcan Energy to Expand Sustainable Lithium Supply in Europe] Siemens has joined forces with Vulcan Energy to advance Europe's first fully integrated lithium and renewable energy project. The two companies signed a framework agreement for the Lionheart lithium and renewable energy project in the Upper Rhine Valley, Germany. They also signed a Memorandum of Understanding (MoU), making Siemens the preferred supplier of automation and digitalization technologies for Vulcan Energy through 2035. Vulcan's preferred partnership with Siemens will extend from Lionheart to future development phases. The Lionheart project involves the construction of an integrated lithium and renewable energy project with a target capacity of 24,000 mt of lithium hydroxide monohydrate (LHM), sufficient to supply approximately 500,000 EV batteries per year, while providing local consumers with 275 Gwh of renewable electricity and 560 Gwh of thermal energy annually, with a projected project lifespan of 30 years. Roland Busch (pictured above), President and CEO of Siemens AG, stated: "As a strategic investor and key technology partner, we are helping Vulcan Energy establish Europe's first major sustainable lithium source. With our technologies — from advanced automation and digitalization to smart building solutions — we help ramp up production faster. This is critical for creating a local lithium supply for our energy transition and for building a more competitive, resilient, and sustainable European industry. This is a powerful example of boosting growth and competitiveness in line with the 'Made in Germany' initiative." Source: https://theenergyst.com/ [Argentina's Lithium Sector Gains Strategic Development Boost from Chinese Partners] The arrangements bringing Chinese partners into Argentina's lithium sector are fundamentally reshaping the critical minerals landscape in South America, as international cooperation has become indispensable for addressing complex supply chain demands and capital-intensive development requirements. These partnerships demonstrate how strategic alliances can accelerate project advancement while sharing technical and financial risks across complementary capabilities. Moreover, the success of these collaborative models signals a broader transformation underway in global mining operations — one in which technological expertise and market access often matter more than traditional resource ownership structures. Chinese enterprises have fundamentally altered the investment architecture of Argentina's lithium mine industry through systematic capital deployment strategies that prioritize vertical integration over speculative resource positioning. This approach reflects broader supply chain security objectives rather than purely financial returns, resulting in distinctive partnership structures that are markedly different from traditional Western mining investment models. The investment patterns emerging in northwestern Argentina demonstrate a sophisticated risk allocation mechanism between international partners and local operators. Chinese enterprises typically structure their participation through phased equity arrangements, starting with technical cooperation and gradually evolving into controlling positions based on development milestones. Source: https://discoveryalert.com.au/ [Mangrove Launches North America's First Commercial Lithium Refining Facility] Mangrove Lithium, a Canadian venture capital-backed private enterprise, launched North America's first commercial lithium refining facility in British Columbia. This marked a significant step toward establishing a secure domestic lithium supply chain for the Canadian and North American markets, supporting the continent's electrification goals. Mangrove's facility uses the company's proprietary electrochemical technology to convert extracted lithium into battery-grade materials, offering a more economical, flexible, and sustainable approach compared to traditional chemical methods. The plant has a nameplate capacity of 1,000 mt/year, capable of producing enough battery-grade lithium to support the production of approximately 25,000 EV units per year. Source: https://www.miningweekly.com/ [Global Lithium Secures Funding to Support Future Development of Manna Project] Global Lithium signed a binding terms list with global battery metals producer Lopal, covering a $7.32 million equity investment and a $75 million (A$104.85 million) offtake prepayment. The funding will accelerate the development of Global Lithium's Manna lithium mine project in Western Australia. Global Lithium also signed a separate binding agreement with a subsidiary of Lopal for the sale of mining and mineral rights interests in its Marble Bar lithium mine project in Western Australia. Lopal will pay A$14.85 million for the project, comprising A$11.85 million in fixed consideration and an additional A$3 million payable upon the granting of the mining lease. Source: https://mining.com.au/

Jiangsu Lopal Tech Co., Ltd., through its overseas wholly-owned subsidiary Lopal Tech Perth Pty Ltd (hereinafter referred to as "Lopal Perth") and Global Lithium Resources Limited ("GL1") and MB Lithium Pty Ltd ("MB Lithium", together with "GL1", the "Sellers"), signed the "Tenements and Mineral Rights Sale Agreement". The subject matter of this transaction is the sellers' collectively held exploration tenements for five lithium mines in Western Australia, as well as the lithium mineral rights for another 11 mining areas. The transaction involves lithium exploration tenements located in the Pilbara region of Western Australia, approximately 150 km southeast of Port Hedland. Since acquiring the mineral rights in 2019, GL1 has continuously carried out exploration work on one of the core tenements, E45/4309, completing a total of 734 reverse circulation drill holes and 7 diamond drill holes, with drilling footage exceeding 102.5 km. According to the "Marble Bar Lithium Project Mineral Resource Estimate Report" prepared in 2022 in accordance with the JORC Code, the project has an ore resource of 18 million tonnes with an average lithium oxide grade of 1.0%. Based on relevant data, the mining area still has good exploration potential. The Company engaged a professional team from SRK Consulting (Hong Kong) Limited ("SRK") in December 2025 to conduct an on-site field inspection of the mining area and carry out due diligence regarding the geological conditions, resource estimation and exploration prospects. At the same time, the Company also engaged Australian law firm Herbert Smith Freehills Kramer in December 2025 to provide legal services including due diligence for the project. Pursuant to the agreement, Lopal Tech Perth Pty Ltd acquired the lithium exploration tenements and related assets held by Global Lithium Resources Limited and MB Lithium Pty Ltd in Australia for a consideration of AUD 14.85 million. The lithium mining project will subsequently require exploration, mining licence application, beneficiation and mining capacity construction, with an expected investment of over USD 200 million and a construction and production ramp-up period of approximately 2–3 years. Through its overseas wholly-owned subsidiary Lopal Perth, the Company signed the "Tenements and Mineral Rights Sale Agreement" with the counterparties GL1 and MB Lithium, acquiring the lithium exploration tenements and related assets held by them in Australia, with the transaction amount being AUD 14.85 million. 1. Counterparties (i) Counterparty 1 Name: Global Lithium Resources Limited Registered Address: Level 1, 16 Ventnor Avenue, West Perth WA 6005 Date of Establishment: May 11, 2018 Major Shareholders: As of April 20, 2026, MINERAL RESOURCES LIMITED holds 9.85%, CANMAX TECHNOLOGIES CO LTD holds 9.45%, SINCERITY DEVELOPMENT PTY LTD holds 7.49%, YONGFANG GUO holds 6.23%, DIANMIN CHEN holds 5.32% Principal Business: GL1 is a lithium resource exploration and development company listed on the Australian Securities Exchange, primarily engaged in the exploration, development and future production of hard-rock lithium resources. (ii) Counterparty 2 Name: MB Lithium Pty Ltd Registered Address: Level 1, 16 Ventnor Avenue, West Perth WA 6005 Date of Establishment: June 10, 2021 Major Shareholders: GL1 holds 100.00%; MB Lithium is a wholly-owned subsidiary of GL1. Principal Business: MB Lithium holds the mineral rights related to the Marble Bar Lithium Project. 2. Agreed Product and Technical Specifications Any spodumene concentrate produced from the Manna Lithium Project with a lithium oxide (Li₂O) content of not less than 5% and meeting the specifications agreed by both parties. The Company has the right to reject products with a lithium oxide content of less than 4.5%. 3. Supply Term The initial term is 10 years from the date of the first supply of the agreed product. Subject to satisfaction of the relevant conditions, the Company has the right to extend the initial term by 4 years by giving notice within one month prior to the expiry of the initial term. 4. Supply Volume GLR shall supply to the Company annually 40% of the actual annual production of spodumene concentrate from the Manna Lithium Project. GLR shall use its best efforts to achieve an annual supply volume of at least 70,000 tonnes of the agreed product. 5. Product Pricing The pricing of the supplied products is based on the average of price indices published by SMM , Fastmarkets, Benchmark Minerals Intelligence, Asian Metal, Platts S&P Global and other agencies, subject to a certain price concession. 6. Supply Shortfall If a supply shortfall occurs during a contract year, GLR shall use reasonable efforts to make up such shortfall within three months after the end of the relevant contract year. If GLR fails to provide the shortfall supply to complete the delivery within such three-month period (the "rectification period"), GLR shall pay in full the price difference to the Company within 30 days after the end of the rectification period. 7. Prepayment Amount Subject to satisfaction of the conditions precedent for the prepayment, the Company shall pay GLR a prepayment of not more than US$75 million (the "Maximum Amount"), which shall be strictly used for the development expenditure of the Manna Lithium Project and the operation of the project after its completion. When the Company accepts the agreed products, such prepayment shall be applied to offset the payable purchase price in batches. Considering the extended period of the prepayment, GLR shall pay the Company a funding fee calculated at a compound annual interest rate of 5%. 8. Overview of the Investment Target GL1 (ABN 58 626 093 150) is an Australian listed company located in Western Australia, primarily engaged in the exploration and development of lithium resources. Its core asset, the Manna Lithium Project, is located 100 km east of Kalgoorlie, Western Australia, and is the third largest lithium resource project in the resource-rich Eastern Goldfields region. The project has a mineral resource of 51.6 million tonnes with an average lithium oxide grade of 1.0%. GL1 holds and operates the Manna Lithium Project through its wholly-owned subsidiary GLR (ACN 653 130 575). GL1 has obtained the mining lease for the lithium project and completed the project feasibility study. GLR expects to make a final investment decision (FID) for the Manna Lithium Project by the end of 2026. Following the FID, GLR will commence project construction, and the lithium project is expected to commence shipments in June 2028. This transaction represents an important measure for the Company to anchor its core business of lithium iron phosphate cathode materials and deepen its upstream resource layout. Currently, the Company's lithium iron phosphate business continues to expand in production and sales volume, its overseas capacity is progressing steadily, and the demand for stable supply and cost control of upstream lithium resources is increasing. Through this transaction, the Company will further enhance its lithium resource security capability, strengthen raw material supply stability and anti-cyclical resilience, improve vertical integration and overall competitiveness, which is in line with the Company's long-term development strategy and the interests of all shareholders. Source: China Securities Journal

Hyundai Motor Group is set to begin operations at battery plants in Georgia, jointly established with LG Energy Solution and SK On, with one facility starting this month and the other later this year. Once fully ramped up, the group will secure annual EV production capacity exceeding 600,000 units in the U.S. LG Energy Solution’s plant will have an annual capacity of 30 GWh, supplying cells for models such as the Ioniq 5 and Ioniq 9 produced at HMGMA. Meanwhile, SK On’s 35 GWh capacity will be converted into battery packs by Hyundai Mobis and fully supplied to Hyundai, Kia, and Genesis EVs manufactured in the U.S.

Aroma Solar has commenced operations at a 1.2 GW TOPCon solar module manufacturing facility in Karnal, Haryana. Billed as northern India's first fully automated, AI-driven production line, the plant produces 620 W to 635 W modules with up to 23.51% efficiency. Utilizing robotic automation and AI for quality control, the facility aims to minimize defects and enhance long-term performance. Moving forward, Aroma Solar plans to further expand capacity and is evaluating entry into solar cell and wafer production to increase vertical integration.