Report Summary 1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core View of the Report - The short - term supply and demand of lithium carbonate are both strengthening, with profit margins expanding, production rebounding, downstream demand rising, and social inventory being depleted. However, due to the cooling measures taken by the Dalian Commodity Exchange on coking coal futures, there is a need to guard against the decline of the "anti - involution" sentiment. It is expected that the price of lithium carbonate will fluctuate widely. The recommended operation strategy is short - term range trading, and appropriate purchase of options for protection [3]. 3. Summary by Related Catalog 3.1 Market Data - **Futures Market**: On August 15, 2025, the main contract of lithium carbonate futures fluctuated widely. The trading volume was 868,811 lots (-191,316), and the open interest was 401,139 lots (+11,962). The spreads between different contracts (near - month to consecutive - one, consecutive - one to consecutive - two, consecutive - two to consecutive - three) and the basis also showed certain changes [3]. - **Spot Market**: The SMM average price of battery - grade lithium carbonate and the prices of various lithium minerals (spodumene concentrate, lithium mica, etc.) changed. The price of spodumene concentrate increased, and the price of lithium mica also rose. The price differences between battery - grade and industrial - grade lithium carbonate, battery - grade lithium hydroxide and battery - grade lithium carbonate, etc., also had corresponding changes [3]. - **Inventory**: The registered warehouse receipts were 23,485 tons (+1,546). The social inventory decreased, the inventory of smelters decreased, while the inventory of downstream and other sectors increased [3]. 3.2 Supply and Demand Analysis - **Supply Side**: Last week, the production of lithium carbonate increased. The production of lithium phosphate increased, and the production of ternary materials rose. In August, the production of lithium cobalt oxide decreased, and the production of lithium manganate increased. Last week, the production of power batteries increased [3]. - **Demand Side**: In July, although the year - on - year growth rate of new energy vehicle production and sales continued, the month - on - month sales decreased. The shipment volume of 3C products was average. In August, the production plan of energy - storage batteries increased [3]. 3.3 Company News - **Sigma Lithium**: From April to June 2025, the company's lithium carbonate ore production totaled 68,368 tons, a year - on - year increase of 38%, exceeding the quarterly target of 67,500 tons. The total sustaining cash cost was $594 per ton, lower than the target of $660 per ton and 24% lower than the same period last year. However, the sales volume in the second quarter decreased by 23% to 40,350 tons. The company's revenue decreased to $21.1 million compared with the first quarter of 2024, and the net loss expanded from $10.8 million to $18.8 million [3]. - **Global Lithium Resources**: On August 13, it reached an aboriginal land mining agreement for its flagship Manna lithium project in the Eastern Goldfields of Western Australia. With the agreement, the company can accelerate other project priorities, and the final feasibility study and mining lease application optimization will be completed by the end of the year. The Manna lithium project has a mineral resource of 51.6 million tons with a lithium grade of 1.0% [3]. - **Green Technology Metals**: On August 13, it obtained two new 21 - year mining licenses for its Seymour lithium project. The new licenses cover the entire proposed construction area, which is an important regulatory milestone for the project and further promotes the project's development schedule. The project only needs to be subject to provincial environmental assessment disclosure and does not require federal review under Canada's Impact Assessment Act [3].

国内多个省市近期发布公告宣布暂停受理汽车置换补贴申请业务，引发了广泛关注。值得注意的是，虽然置换更新补贴暂停，但这些城市报废更新的补贴申请仍在继续受理。此外，即将启动的个人消费贷款贴息政策，也涵盖了汽车消费领域。（上观新闻） ...

Group 1 - The core viewpoint of the article highlights the ongoing developments in the automotive industry, focusing on new product launches, pricing adjustments, and policy changes affecting consumer behavior and company strategies [1][3]. Group 2 - Li Auto's product manager emphasized that the price of the new i8 model will not exceed 500,000 yuan, aiming to provide a large six-seat electric SUV with long range and spaciousness [1]. - Huawei's ADS 4 is expected to begin phased rollouts by the end of September, with existing ADS 3 users eligible for free upgrades [1]. - Toyota announced a price increase for certain models in the U.S. starting in July, with average increases of $270 for Toyota and $208 for Lexus models, citing market conditions as the reason [1]. - Several regions in China have suspended car replacement subsidies, which may affect consumer purchasing decisions and compel automakers to adjust their marketing strategies [1].

Core Viewpoint - The automotive market is experiencing a significant change as multiple cities in China have announced a suspension of applications for vehicle replacement subsidies due to exhausted budget funds, which has surprised consumers and attracted market attention [1][3]. Group 1: Policy Purpose and Impact - The vehicle replacement subsidy policy aims to lower the purchase threshold for consumers, stimulate market activity, accelerate the elimination of old vehicles with high energy consumption and emissions, and encourage the purchase of new energy vehicles [3][5]. - The subsidy amounts vary by region, with local governments supplementing a national base standard, resulting in consumer subsidies ranging from thousands to over twenty thousand yuan, typically higher for new energy vehicles [3][5]. Group 2: Future Policy Adjustments - The use of the term "suspension" rather than "termination" indicates potential for future policy reactivation, as local governments need time to evaluate the current policy's effectiveness and plan for the next round of funding [5][9]. - Future subsidy policies may shift focus towards new energy vehicles, potentially increasing subsidies for electric and plug-in hybrid models while reducing or imposing stricter limits on subsidies for fuel vehicles [7][9]. Group 3: Potential New Subsidy Forms - Upcoming subsidies may adopt diverse forms, such as "automobile consumption vouchers" that can be directly deducted from the purchase price or partnerships with financial institutions to offer low-interest loans, maximizing the leverage effect of fiscal subsidies [7][9]. - Dynamic subsidies may continue to expand the range of eligible old vehicles for subsidies, while new standards for energy consumption, range, and intelligence of new vehicles may be established to guide the automotive industry towards higher quality development [7][9]. Group 4: Regional Policy Variations - Local governments may implement subsidy schemes tailored to their urban development plans, environmental capacities, and financial situations, leading to a policy landscape that varies by region, with first-tier cities focusing on new energy vehicles and others maintaining support for energy-efficient fuel vehicles [7][9].

Core Viewpoint - The automotive replacement subsidy policy in several regions, including Zhengzhou and Luoyang, has been suspended, impacting consumer purchasing behavior and creating challenges for car manufacturers in achieving sales targets [1][2][3]. Group 1: Policy Changes - Zhengzhou and Luoyang have announced the suspension of the 2025 automotive replacement subsidy application, with the highest subsidy amount being 15,000 yuan for eligible users [1][2]. - The suspension is attributed to the depletion of subsidy funds, with the announcement indicating a pause rather than a termination of the program [2][3]. - Other regions, such as Chongqing and Shenyang, are also planning to suspend their automotive replacement subsidy applications, indicating a broader trend [3]. Group 2: Market Impact - The suspension of subsidies is expected to lead to increased consumer hesitation and a potential decline in vehicle sales, particularly affecting budget-conscious buyers [3]. - The "National Subsidy" program remains available, but its impact may not significantly differ from local subsidies [3]. - Data shows that as of May 31, 4.12 million applications for the "National Subsidy" were submitted, with a notable increase in applications in May compared to April [3]. Group 3: Industry Challenges - The automotive industry is facing pressure to maintain sales amid a competitive environment, with companies like BYD and Geely engaging in price promotions to boost sales [4][5]. - The China Automotive Industry Association has issued a warning against excessive price competition, emphasizing the need for fair market practices [5][6]. - Major automakers are still striving to meet their annual sales targets, with BYD leading with 1.76 million units sold in the first five months of the year [6]. Group 4: Future Outlook - Experts suggest that the automotive market will continue to evolve, with companies needing to focus on product differentiation and innovation to thrive in a post-subsidy environment [7]. - The market is expected to stabilize as companies adapt to the changing landscape and seek new growth drivers beyond government incentives [7].