1. Report Industry Investment Rating - No information provided on the industry investment rating in the report [1] 2. Core View of the Report - The macro - expectations of lithium carbonate are fluctuating, and the fundamentals remain weak. The trend strength of lithium carbonate is 0, indicating a neutral stance [1][3] 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Contracts**: - For the 2507 contract, the closing price was 61,680, with a change of 920 compared to T - 1; the trading volume was 236,197, up 31,417 from T - 1; the open interest was 178,235, down 16,496 from T - 1. - For the 2509 contract, the closing price was 61,740, up 760 from T - 1; the trading volume was 168,732, up 56,115 from T - 1; the open interest was 216,554, up 21,790 from T - 1 [1] - **Warehouse Receipts**: The warehouse receipt volume was 32,837 hands, down 110 from T - 1 [1] - **Basis**: - The basis of spot - 2507 was - 1,180, down 770 from T - 1; the basis of spot - 2509 was - 1,240, down 610 from T - 1; the basis of 2507 - 2509 was - 60, up 160 from T - 1 [1] - **Raw Materials**: - The price of lithium spodumene concentrate (6%, CIF China) was 630, up 2 from T - 1; the price of lithium mica (2.0% - 2.5%) was 1,210, up 25 from T - 1 [1] - **Lithium Salts**: - The price of battery - grade lithium carbonate was 60,500, up 150 from T - 1; the price of industrial - grade lithium carbonate was 58,900, up 150 from T - 1; the price of battery - grade lithium hydroxide (micropowder) was 66,050, down 300 from T - 1 [1] - **Related Products**: - The price of lithium iron phosphate (power type) was 30,445, up 40 from T - 1; the price of lithium iron phosphate (mid - high - end energy - storage type) was 28,950, up 30 from T - 1; the price of lithium iron phosphate (low - end energy - storage type) was 26,650, up 40 from T - 1 [1] 3.2 Macro and Industry News - SMM's battery - grade lithium carbonate index price was 60,704 yuan/ton, up 105 yuan/ton from the previous working day. The average price of battery - grade lithium carbonate was 60,500 yuan/ton, up 150 yuan/ton from the previous working day, and the average price of industrial - grade lithium carbonate was 58,900 yuan/ton, up 150 yuan/ton from the previous working day [1] - Zimbabwe will ban the export of lithium concentrate from 2027 to promote more local processing [1][3] - The adsorption lithium extraction device of the 40,000 - ton/year basic lithium salt integrated project in the Qarhan production area of China Salt Lake Industry Group Co., Ltd., a subsidiary of China Minmetals Corporation, completed the intermediate handover and entered the trial - production stage [1][3] 3.3 Trend Strength - The trend strength of lithium carbonate is 0, with the range of trend strength being integers in the [- 2,2] interval, where - 2 means the most bearish and 2 means the most bullish [3]

Group 1: Lithium Production Capacity - The company has established three major production bases in Sichuan and Jiangxi, with a total lithium hydroxide production capacity of 16.5 thousand tons per year: 7.5 thousand tons in Yibin, 6 thousand tons in Meishan, and 3 thousand tons in Yichun [1][2] - A subsidiary has implemented a flexible transformation of a production line to achieve an annual capacity of 30 thousand tons of battery-grade lithium hydroxide, which can be converted to 26.5 thousand tons of battery-grade lithium carbonate based on market demand [2] Group 2: Resource Management and Cost Control - The company is focusing on enhancing operational efficiency and cost control in response to declining lithium salt prices by expanding quality customer relationships and locking in fixed prices for long-term contracts [2] - The strategy includes increasing the supply rate of self-owned mines to reduce raw material costs and implementing a three-tier lean improvement mechanism to enhance overall operational efficiency [2] Group 3: Mining Licenses and Future Plans - The company’s subsidiary, Yichun Shengyuan, has obtained a mining license for a lithium-containing ceramic soil mine in Jiangxi, with plans to advance resource extraction according to company strategy [2] - Future plans involve further advancing lithium mining projects and strengthening the layout of self-owned lithium resources in regions like Nigeria and the Democratic Republic of the Congo [2] Group 4: Research and Development Initiatives - The company is actively engaged in the development of solid-state battery technologies and has formed partnerships with universities and research institutes for the research of sulfide solid electrolytes and low-cost ultra-pure lithium sulfide [3][4] - Research on spinel nickel manganese lithium materials is progressing, with the material being recognized for its cost-effectiveness and performance, making it a viable option for next-generation high-energy batteries [3][4] Group 5: Market Expansion Strategies - The company has established long-term stable partnerships with leading automotive manufacturers and battery producers, ensuring a solid customer base and sales channels [4] - Efforts are being made to continuously expand new business areas and market spaces to achieve growth in incremental business revenue and enhance product competitiveness [4]

Report Summary 1. Report Industry Investment Rating No information provided regarding the report industry investment rating. 2. Core View of the Report The fundamentals of lithium carbonate remain weak, and the upside potential may be limited [1]. 3. Summary by Relevant Catalogs Fundamentals Tracking - **Market Data**: The closing prices of the 2507 and 2509 contracts were 65,200 and 66,280 respectively. The trading volumes of the 2507 and 2509 contracts were 377,525 and 44,885 respectively. The open interests of the 2507 and 2509 contracts were 276,956 and 62,539 respectively. The warehouse receipt volume was 36,716 [2]. - **Basis Data**: The basis of spot - 2507 was -500, spot - 2509 was -1,580, 2507 - 2509 was -1,080, electric carbon - industrial carbon was 1,650, and spot - CIF was 3,429 [2]. - **Raw Material Data**: The price of spodumene concentrate (6%, CIF China) was 713, lithium mica (2.0% - 2.5%) was 1,360, battery - grade lithium carbonate was 64,700, and battery - grade lithium carbonate (CIF) was 8,500 [2]. - **Lithium Salt Data**: The price of industrial - grade lithium carbonate was 63,050, battery - grade lithium hydroxide (micronized) was 71,085, battery - grade lithium hydroxide (CIF) was 8,550, and various types of lithium iron phosphate and ternary materials also had corresponding prices [2]. Macro and Industry News - SMM's battery - grade lithium carbonate index price was 64,959 yuan/ton, up 197 yuan/ton from the previous working day. The average price of battery - grade lithium carbonate was 64,700 yuan/ton, up 100 yuan/ton, and the average price of industrial - grade lithium carbonate was 63,050 yuan/ton, up 100 yuan/ton [3]. - On May 13, Yahua Group announced that its subsidiary terminated the original lithium concentrate purchase agreement with Core's subsidiary. Core's Finniss lithium mine project suspended operations and could not supply lithium concentrate [4]. Trend Intensity The trend intensity of lithium carbonate was 0, with a range of [-2, 2] indicating different levels of bullishness or bearishness [4].

1. Report Industry Investment Rating - Not provided in the content 2. Core View of the Report - The supply - demand imbalance in the lithium carbonate market persists, with supply exceeding demand. The overall trend of lithium carbonate prices is difficult to reverse the downward situation due to capacity mismatch. The 2507 contract of lithium carbonate is expected to fluctuate in the range of 63,420 - 64,660 [8][9][13]. 3. Summary According to the Directory 3.1 Daily View - **Supply Side**: Last week, lithium carbonate production was 18,349 tons, a 26.69% week - on - week increase, higher than the historical average. In April 2025, the production was 73,810 tons, and the predicted production for next month is 75,500 tons, a 2.29% increase. The import volume in April was 20,000 tons, and the predicted import volume for next month is 24,000 tons, a 20% increase [8][9]. - **Demand Side**: Last week, the inventory of sample enterprises of lithium iron phosphate was 86,988 tons, a 2.16% week - on - week decrease, and the inventory of sample enterprises of ternary materials was 15,556 tons, an 11.59% week - on - week increase. It is expected that demand will strengthen next month, and inventory may be reduced [8]. - **Cost Side**: The cost of purchased spodumene concentrate is 68,459 yuan/ton, a 0.59% daily decrease, resulting in a loss of 4,750 yuan/ton. The cost of purchased lepidolite is 69,610 yuan/ton, a 0.33% daily decrease, resulting in a loss of 7,566 yuan/ton. The production cost of the recycling end is generally higher than that of the ore end, with negative production income and low production enthusiasm. The quarterly cash production cost of the salt lake end is 31,868 yuan/ton, significantly lower than the ore end, with sufficient profit margins and strong production motivation [9]. - **Base Spread**: On May 12, the spot price of battery - grade lithium carbonate was 64,600 yuan/ton, and the base spread of the 07 contract was 560 yuan/ton, with the spot at a premium to the futures, showing a neutral situation [9]. - **Inventory**: The smelter inventory was 54,852 tons, a 7.48% week - on - week increase, higher than the historical average; the downstream inventory was 42,156 tons, a 6.67% week - on - week decrease, higher than the historical average; other inventories were 34,561 tons, a 3.54% week - on - week decrease, higher than the historical average; the total inventory was 131,569 tons, a 0.35% week - on - week decrease, higher than the historical average, showing a bearish situation [9]. - **Market**: The MA20 is downward, and the futures price of the 07 contract closed below the MA20, showing a bearish situation [9]. - **Main Position**: The main position is net short, and short positions are increasing, showing a bearish situation [9]. - **Likely Positive Factors**: Manufacturers' plans to halt or reduce production, a month - on - month decrease in the amount of lithium carbonate imported from Chile, and a decline in the import volume of spodumene [11]. - **Likely Negative Factors**: The supply at the ore/salt lake end remains at a high level with limited decline, and the willingness of the power battery end to take delivery is insufficient [12]. - **Main Logic**: Capacity mismatch leads to strong supply and weak demand, and the downward trend is difficult to change [13]. 3.2 Lithium Carbonate Market Overview - **Price and Base Spread**: The prices of lithium ore, lithium carbonate, lithium hydroxide, and other products showed varying degrees of increase or decrease. The base spreads of some products showed significant changes, such as a - 74.89% decrease in the base spread of the 07 contract [15]. - **Supply - Side Data**: The weekly and monthly operating rates of some products showed fluctuations. For example, the weekly operating rate of lithium iron phosphate decreased by 2.09%, and the monthly operating rate increased by 1.82%. The production costs and profits of lithium iron ore and lithium iron phosphate also changed [17]. - **Demand - Side Data**: The monthly production and sales volume of some products increased. For example, the monthly production of lithium iron phosphate increased by 4.13%, and the monthly battery loading volume increased by 62.18% [17]. 3.3 Supply - Related Content - **Lithium Ore**: The price of lithium ore showed a downward trend. The production and import volume of lithium ore in different periods showed different changes. The self - sufficiency rate of lithium ore also fluctuated. The weekly inventory of lithium ore at ports and traders showed a certain trend [21][22]. - **Lithium Carbonate**: The weekly operating rate, production, and import volume of lithium carbonate from different sources (lithium ore, lithium mica, salt lake, recycling) showed different trends. The supply - demand balance of lithium carbonate also changed in different months [27][28][33]. - **Lithium Hydroxide**: The weekly capacity utilization rate, monthly operating rate, production, export volume, and supply - demand balance of lithium hydroxide showed different situations in different periods [35][36][39]. 3.4 Lithium Compound Cost - Profit - The cost and profit of purchased spodumene concentrate, purchased lepidolite concentrate, and various recycling materials for producing lithium carbonate showed different trends. The purification profit of industrial - grade lithium carbonate, the profit of lithium hydroxide carbonization to lithium carbonate, and the profit of lithium carbonate causticization to lithium hydroxide also changed [41][42][45]. 3.5 Inventory - The inventory of lithium carbonate and lithium hydroxide at different stages (smelter, downstream, other) showed different trends in weekly and monthly data [50]. 3.6 Demand - Related Content - **Lithium Battery**: The price, production, loading volume, export volume, and inventory of lithium batteries showed different trends in different periods. The cost of battery cells also changed [53][54][56]. - **Ternary Precursor**: The price, cost, profit, processing fee, capacity utilization rate, production, and supply - demand balance of ternary precursors showed different situations in different periods [58][59][62]. - **Ternary Material**: The price, cost, profit, operating rate, production, export volume, import volume, and inventory of ternary materials showed different trends in different periods [64][65][67]. - **Lithium Iron Phosphate**: The price, production cost, profit, capacity, operating rate, production, export volume, and inventory of lithium iron phosphate showed different trends in different periods [69][70][72]. - **New Energy Vehicle**: The production, sales volume, export volume, sales penetration rate, and inventory of new energy vehicles showed different trends in different periods [76][77][78].