Summary of Key Points from Conference Call Records Industry Overview: Non-Ferrous Metals Electric Vehicles and Energy Storage - Domestic electric vehicle penetration rate is rapidly increasing, expected to reach 53.5% by September 2025, while global penetration varies significantly, indicating growth potential outside China and Europe [1][2] - Policy support for energy storage is strengthening, with projections for new energy storage installations to reach 180 million kilowatts by 2027, driving project investments of 250 billion yuan [1][2] Lithium Supply and Demand - Due to low lithium carbonate prices in the past two years, global lithium mining companies are expected to reduce capital expenditures in 2024, potentially slowing future production [1][3] - Lithium supply growth is projected to fall below 20% for the first time in 2026, while demand remains strong, leading to a significant reduction in surplus lithium in the market next year [1][3] Aluminum Market Dynamics - The electrolytic aluminum market is benefiting from rising copper prices, with aluminum prices approaching 21,000 yuan, and domestic capacity utilization rates are high [1][4] - The impact of tariffs between China and the U.S. on the aluminum sector is limited, with China exporting approximately 800,000 tons of aluminum products to the U.S. annually, accounting for about 5% of total aluminum demand [4][6] Alumina Price Impact - The decline in alumina prices has positively affected companies with low self-sufficiency rates, such as Zhongfu Industrial, which has shown excellent profit performance [1][7] Key Market Trends and Projections Lithium Market Outlook - Recent rebounds in lithium futures indicate strong downstream demand, with expectations for lithium prices to remain supported in the short term [2][3] - The anticipated increase in energy storage demand and electric vehicle penetration are primary drivers for lithium demand [2][3] Copper Price Fluctuations - Copper prices are currently volatile, influenced by macroeconomic factors, with expectations for a bullish window in the first half of 2026, potentially reaching historical highs of 12,000 to 14,000 USD [8][9] Tin Market Insights - Tin is classified as a critical mineral resource, with supply tightness driven by China's export controls and global supply constraints [2][15] - Strong demand for tin solder, particularly from the semiconductor sector, is expected to continue [15] Rare Earths and Tungsten - Recent price corrections in rare earths are attributed to market sentiment and export controls, with future price movements dependent on the stabilization of neodymium and praseodymium prices [18][19] - The tungsten market has seen price corrections followed by a rebound, with recommendations for companies like Xiamen Tungsten and others due to their growth potential [22] Investment Recommendations - High-dividend stocks such as China Aluminum and Zhongfu Industrial are highlighted as attractive investment opportunities [1][7] - Companies in the lithium sector, including Ganfeng Lithium and Tianqi Lithium, are recommended for their growth potential in solid-state batteries and energy storage [5] - Focus on companies like Huayou Cobalt and Luxshare Precision in the cobalt sector, which are expected to see significant profit growth [14] Conclusion - The non-ferrous metals sector is poised for growth driven by electric vehicle adoption, energy storage demand, and strategic supply constraints. Investment opportunities exist across various sub-sectors, particularly in lithium, aluminum, and cobalt, with a focus on companies demonstrating strong fundamentals and growth potential.

Group 1 - Lithium Americas has secured the first disbursement of $435 million from a $2.23 billion loan guarantee provided by the U.S. Department of Energy for the Thacker Pass lithium project [1] - The total loan includes $1.97 billion in principal and an estimated $256 million in capitalized interest during the construction phase [1] - Construction of the processing facility for the Thacker Pass project has commenced, with workers already residing in employee accommodations in Winnemucca [1] Group 2 - The U.S. Department of Energy has agreed to acquire a 5% stake in Lithium Americas and a 5% stake in the Thacker Pass project, which is crucial for General Motors' electric vehicle transition [2] - This acquisition is part of the Trump administration's efforts to accelerate the development of a domestic supply chain for critical minerals [2] - Earlier this year, the U.S. Department of Defense announced a $400 million investment in MP Materials to fund a new rare earth magnet production facility [2]

Group 1 - Yahua Group reported a significant increase in net profit for Q3, with a quarter-on-quarter growth of 245.58% to 320.62% and a year-on-year growth of 251.37% to 327.66% [1][2] - Yahua Group's estimated net profit for the first three quarters is between 320 million to 360 million yuan, representing a year-on-year increase of 106.97% to 132.84% [1] - Salt Lake Co. expects a net profit of 4.3 billion to 4.7 billion yuan for the first three quarters, showing a year-on-year growth of 36.89% to 49.62% [2] Group 2 - The lithium carbonate futures price showed signs of stabilization in Q3, with a minimum price of 61,000 yuan/ton and a maximum of 90,000 yuan/ton, compared to a decline in Q2 [2] - The industry is focusing on solid-state battery technology, particularly lithium sulfide, which can be produced from lithium hydroxide [1][3] - Companies like Tianqi Lithium and Ganfeng Lithium are advancing in the production of lithium sulfide and have established production capabilities for solid-state battery materials [4][5] Group 3 - Yahua Group is actively pursuing the research and industrialization of lithium sulfide for solid-state batteries, with plans to complete sample production by the end of the year [3] - Tianhua New Energy is also engaged in the research and industrialization of lithium sulfide materials, with samples sent to leading companies in the solid-state electrolyte sector [3] - Shengxin Lithium Energy is developing metal lithium for solid-state battery materials, with a planned annual production capacity of 3,000 tons [5]

Lithium Market - Lithium carbonate prices have shown an upward trend this week, with prices for battery-grade lithium carbonate at 73,500-74,500 CNY/ton, averaging 74,000 CNY/ton, an increase of 650 CNY/ton from the previous working day [2] - The overall sentiment in the lithium market is better than before, with tight supply of spot lithium ore and frequent inquiries from downstream lithium salt manufacturers for raw material reserves [1][2] Cobalt Market - Electrolytic cobalt prices have rapidly increased, driven by tight raw material inventories at smelting enterprises and a shift in trade quotes from premium to parity or slight discounts [4] - Cobalt intermediate prices remain strong, with a slight increase in imports, but actual transactions are still limited due to strong pricing from upstream suppliers [5] - Cobalt salt prices, including cobalt sulfate and cobalt chloride, have stabilized, with cobalt sulfate prices around 91,000-93,000 CNY/ton, while cobalt chloride prices are expected to rise due to supply constraints [6][7][14] Nickel Market - Battery-grade nickel sulfate prices remain stable, with the index price at 28,421 CNY/ton, as supply remains tight and demand from downstream manufacturers increases [8] - The overall nickel salt supply is expected to remain tight, with potential for price increases in the future [8] Precursor and Material Market - The price of ternary precursors continues to rise, supported by tight supply of nickel sulfate and cobalt sulfate, while some smaller precursor manufacturers have suspended quotes due to procurement difficulties [9][10] - Ternary materials prices are also on the rise, driven by increasing costs of raw materials, with demand from the domestic power market remaining strong [10] Iron Phosphate Market - Iron phosphate prices are stable with strong demand from the energy storage and power sectors, leading to upward pressure on prices [13] - The overall demand for iron phosphate is expected to maintain a growth rate of over 5% in October [11][13] Separator Market - The separator market is experiencing structural price increases, particularly for wet separators, due to high demand in the energy storage market and limited new capacity [17] - Major separator manufacturers are nearing full capacity, leading to a tight supply situation [17] Electrolyte Market - Electrolyte prices are stable, but cost pressures are increasing due to rising prices of lithium hexafluorophosphate and other additives [18] - Demand for electrolytes is expected to rise as projects in the pure electric heavy truck sector continue to progress [18] Sodium Battery Market - The sodium battery industry is focusing on balancing mass production with technology optimization and cost control, with expectations for moderate recovery in October [20] Recycling Market - Prices for cobalt and nickel salts are rising, while lithium carbonate prices have slightly decreased, leading to mixed market conditions for recycled materials [21]

1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints of the Report - The lithium carbonate futures price may form a short - term premium driven by market news. Although there is an expectation of new capacity release on the supply side, factors such as the increase in spodumene cost and the time required for the ramp - up of salt lake lithium production capacity, as well as the short - term impact of some lithium mines' supplementary payment of lithium, tantalum, and niobium resource taxes and the 414 safety accident rumors, will push up the lithium price. The impact of the peak seasons of "Golden September and Silver October" on the demand side may fade in the short term, and the digestion of 130,000 tons of inventory and 30,000 warrants still raises concerns about oversupply [3]. - In October, although the supply of lithium carbonate is growing steadily, the strong demand in the power and energy storage fields will drive the market into a significant de - stocking stage, and it is expected to form a stage of tight supply [6]. - Considering the dual factors of increased supply and growing demand, the decline in inventory may lead to a short - term tight supply. The price is expected to fluctuate strongly, but attention should be paid to the impact of new capacity release, and there may be a risk of a high - level correction [34]. 3. Summary by Relevant Catalogs 3.1 Daily Market Summary - **Carbonate Lithium Futures Market Data Changes** - The price of the main lithium carbonate contract remained at 75,700 yuan/ton, with the weekly price center gradually rising from 72,680 yuan/ton to 75,700 yuan/ton, showing signs of phased stabilization. The basis strengthened from - 2,600 yuan/ton to - 2,400 yuan/ton, the spot market quotation rebounded slightly, and the futures discount narrowed [1]. - The open interest of the main contract decreased by 12.93% to 138,000 lots, and the trading volume shrank significantly by 53.84% to 169,000 lots, indicating a significant decline in market trading activity [1]. - **Supply - demand and Inventory Changes in the Industrial Chain** - **Supply Side**: The capacity utilization rate of lithium carbonate increased from 71.31% to 74.39%, a month - on - month increase of 4.32%, mainly due to the commissioning of salt lake lithium extraction projects and the optimization of the spodumene lithium extraction process. The price of spodumene concentrate increased by 3% to 6,685 yuan/ton, strengthening the cost support; the price of lepidolite remained stable at 3,400 yuan/ton, and the supply side showed an overall trend of incremental release [2]. - **Demand Side**: The prices of cathode materials continued to rise. The price of power - type lithium iron phosphate increased by 0.62% to 34,000 yuan/ton, and the price of ternary materials also increased. The prices of downstream battery cells increased significantly, with the price of 523 square ternary battery cells jumping by 24.49%. The inventory replenishment demand of battery enterprises recovered. In terms of the terminal demand for new energy vehicles, from October 1 - 12, the retail penetration rate of new energy passenger vehicles reached 53.5%, and the manufacturers' wholesale volume increased by 1% year - on - year [2]. - **Inventory and Warrants**: The total lithium carbonate inventory decreased by 1.59% to 133,000 tons, with two consecutive weeks of de - stocking. Coupled with the decrease in warrant registration volume, the market may enter a phased period of tight supply [2]. 3.2 Industrial Chain Price Monitoring - The price of the lithium carbonate main contract remained unchanged at 75,700 yuan/ton from October 17 to October 20. The basis strengthened by 7.69% from - 2,600 yuan/ton to - 2,400 yuan/ton. The open interest of the main contract decreased by 12.93%, and the trading volume decreased by 53.84%. The market price of battery - grade lithium carbonate increased by 0.27%. The market price of spodumene concentrate increased by 3% to 6,685 yuan/ton, while the price of lepidolite concentrate remained stable. The price of lithium hexafluorophosphate increased by 4.64%. The prices of power - type ternary materials and power - type lithium iron phosphate increased by 0.75% and 0.62% respectively. The prices of various types of battery cells also showed different degrees of increase [5]. 3.3 Industry Dynamics and Interpretations - **Spot Market Quotations**: On October 20, the SMM battery - grade lithium carbonate index price was 73,991 yuan/ton, a day - on - day increase of 642 yuan/ton. The average price of battery - grade lithium carbonate was 74,000 yuan/ton, and the average price of industrial - grade lithium carbonate was 71,750 yuan/ton, both increasing by 650 yuan/ton compared with the previous working day. The futures price of lithium carbonate continued to fluctuate, with the center of the main contract rising to the range of 75,400 - 76,600 yuan/ton. The downstream material factories' operating rates continued to rise, and demand supported spot transactions. On the supply side, new production lines were put into operation at both the spodumene and salt lake ends, and it is expected that the total lithium carbonate production in October still has growth potential. On the demand side, both the commercial and passenger new energy vehicles in the power market are growing rapidly, and the energy storage market has strong supply and demand. Overall, in October, although the supply is growing steadily, the strong demand in the power and energy storage fields will drive the market into a significant de - stocking stage, and it is expected to form a stage of tight supply [6]. - **Downstream Consumption Situation**: According to the data of the Passenger Car Association, from October 1 - 12, the retail volume of new energy passenger vehicles nationwide was 367,000, a year - on - year decrease of 1% compared with the same period last October but a 1% increase compared with the same period last month. The retail penetration rate of new energy passenger vehicles was 53.5%, and the cumulative retail volume since this year was 9.236 million, a year - on - year increase of 23%. The manufacturers' wholesale volume of new energy passenger vehicles was 328,000, a year - on - year increase of 1% compared with the same period last October but an 11% decrease compared with the same period last month. The manufacturers' wholesale penetration rate of new energy passenger vehicles was 60.2%, and the cumulative wholesale volume since this year was 10.775 million, a year - on - year increase of 31% [7]. - **Industry News**: - On September 28, it was reported that on September 20, the electromechanical equipment of EVE Energy's Hungary base officially entered the site, marking that the civil engineering project of the project has entered a critical stage. The base is expected to be completed in 2026 and will supply large - cylindrical batteries to BMW Group's Debrecen plant [9]. - On September 26, Tianqi Lithium's 30,000 - ton battery - grade lithium hydroxide project in Zhangjiagang, Jiangsu, with a total investment of about 1.8 billion yuan, was completed and put into production. This is the first project implemented and completed in Tianqi Lithium's "five - year strategic plan" and the second fully automated battery - grade lithium hydroxide (lithium carbonate) factory of Tianqi Lithium in Zhangjiagang [9]. - On September 26, Tibet Mining's 10,000 - ton lithium carbonate project at Zabuye Salt Lake, which had been in the works for four years, was officially put into production. The project's capacity release is expected to significantly improve the self - sufficiency rate of domestic lithium resources [10].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report The current short - term supply - demand pattern is favorable, with inventory continuously decreasing and the futures market having some support. It is expected that the short - term futures market will fluctuate. However, if the mining end resumes production and consumption weakens, the market may decline [3]. 3. Summary by Related Content Market Analysis - On October 20, 2025, the lithium carbonate main contract 2511 opened at 76,260 yuan/ton and closed at 75,700 yuan/ton, with a - 0.08% change from the previous day's settlement price. The trading volume was 169,108 lots, and the open interest was 138,434 lots (159,000 lots the previous day). The basis was - 1,960 yuan/ton, and the lithium carbonate warehouse receipts were 30,705 lots, an increase of 19 lots from the previous day [1]. - According to SMM data, the price of battery - grade lithium carbonate was 73,500 - 74,500 yuan/ton, up 650 yuan/ton from the previous day; the price of industrial - grade lithium carbonate was 71,150 - 72,350 yuan/ton, also up 650 yuan/ton. The price of 6% lithium concentrate was 860 US dollars/ton, up 10 US dollars/ton from the previous day [1]. - The downstream material factory's operating rate is continuously rising, and demand supports spot transactions. New production lines have been put into operation at both the spodumene and salt - lake ends, and the total lithium carbonate production in October is expected to continue to grow. The power market for new energy vehicles (both commercial and passenger) is growing rapidly, and the energy storage market has strong supply and demand [1]. Import and Export Data - In September 2025, China imported 19,597 tons of lithium carbonate, a 10% month - on - month decrease and a 20% year - on - year increase. 11,000 tons were imported from Chile (55% of the total), and 6,948 tons were imported from Argentina (35% of the total). Exports were 151 tons, a 59% month - on - month decrease and a 9% year - on - year decrease [2]. - In September 2025, China imported 710,600 tons of spodumene, a 14.7% month - on - month increase. From January to September 2025, the total import volume was 5.576 million tons, a 37% year - on - year increase [2]. Strategy - The futures market showed a weak and slight fluctuation on the day. Lithium ore imports increased significantly, lithium salt imports decreased slightly month - on - month, and overall imports were relatively good. The rapid reduction of warehouse receipts slowed down, and warehouse receipts began to increase slightly. In the short term, the supply - demand pattern is good, and the market is expected to fluctuate. After the mining end resumes production and consumption weakens, the market may decline [3]. - For single - side trading, short - term range operations are recommended. If the market rebounds significantly, sell - hedging can be carried out at high prices. There are no recommendations for inter - period, inter - variety, spot - futures, and options trading [3].

Group 1 - The core viewpoint of the news is that Shengxin Lithium Energy has seen a stock price increase of 5.61%, reaching 20.14 CNY per share, with a trading volume of 305 million CNY and a market capitalization of 18.434 billion CNY [1] - Shengxin Lithium Energy, established on December 29, 2001, and listed on May 23, 2008, is primarily engaged in the production and sales of new energy and materials, including lithium chloride and battery-grade lithium hydroxide [1] - The company's main business revenue is entirely derived from the new energy sector, accounting for 100% of its income [1] Group 2 - Chang'an Fund has a significant holding in Shengxin Lithium Energy, with its Chang'an Xinxin Mixed A Fund (005477) reducing its stake by 922,000 shares in the second quarter, now holding 1.3529 million shares, which represents 5.94% of the fund's net value [2] - The Chang'an Xinxin Mixed A Fund has a total scale of 61.8789 million CNY and has achieved a year-to-date return of 10.71%, ranking 5547 out of 8162 in its category [2] - The fund manager, Jiang Bowen, has been in charge for 1 year and 105 days, with the best fund return during his tenure being 24.09% [3]

Group 1 - The core viewpoint of the news is that Shengxin Lithium Energy has seen a stock price increase of 5.61%, reaching 20.14 CNY per share, with a total market capitalization of 18.434 billion CNY as of the report date [1] - Shengxin Lithium Energy, established on December 29, 2001, and listed on May 23, 2008, is primarily engaged in the production and sales of new energy and materials, including lithium products [1] - The company's main business revenue is entirely derived from the new energy sector, indicating a focused operational strategy [1] Group 2 - Among the top ten circulating shareholders of Shengxin Lithium Energy, Huaxia Fund's Huaxia Industry Prosperity Mixed A fund holds 9.9943 million shares, unchanged from the previous period, representing 1.15% of circulating shares [2] - The Huaxia Industry Prosperity Mixed A fund has achieved a year-to-date return of 48.82%, ranking 708 out of 8162 in its category, and a one-year return of 56.9%, ranking 409 out of 8024 [2] - The fund manager, Zhong Shuai, has been in position for 5 years and 87 days, with the fund's total asset size at 8.253 billion CNY and a best return of 164.44% during his tenure [3]

Core Viewpoint - The company aims to become a leading global mining group by leveraging its substantial mineral resources and advanced extraction technologies, focusing on the synergistic development of its three main business segments: potassium, lithium, and copper [3]. Group 1: Business Performance - The company held a performance briefing on October 20, 2025, attended by 304 analysts and investors, discussing the operational performance for the first three quarters of 2025 [1][2]. - Revenue for the first three quarters increased by 3.35% year-on-year, driven primarily by a 34.04% increase in potassium chloride revenue, while lithium carbonate revenue decreased by 64.50% due to market price fluctuations and production halts [5]. - The average sales cost of potassium chloride was 978.69 RMB/ton, a decrease of 19.12% year-on-year, while the average selling price was 2919.81 RMB/ton, an increase of 26.88% year-on-year, resulting in a gross margin of 63.46%, up 20.78 percentage points [5]. Group 2: Strategic Developments - The company plans to optimize potassium chloride production and cost control, with the Laos potassium salt mine serving as a strategic reserve for future growth [3]. - The second phase of the joint venture with Jilong Copper is expected to significantly increase copper production upon commencement [3]. - The lithium carbonate project at the Mami Cuo salt lake is progressing steadily, with production adjustments made for the year due to earlier production halts [6][7]. Group 3: Shareholder Returns - The company has emphasized its commitment to shareholder returns, having distributed a total of 7.4 billion RMB in dividends from 2022 to 2024, with 1.569 billion RMB distributed in the first half of 2025 [4]. Group 4: Cost Control and Efficiency - The company has achieved significant cost control, with a notable reduction in operating costs contributing to improved profitability in the potassium chloride segment [5]. - The company is actively working on reducing environmental impacts through innovative mining techniques in its Laos potassium project [8]. Group 5: Future Outlook - The company is focused on enhancing its competitive edge through resource development and technological innovation in its core business areas of potassium, lithium, and copper [8].

Core Viewpoint - The company has successfully completed and commenced operations at the Li Jiagou lithium mine project, with specific output and operational data available in the company's disclosed 2025 semi-annual report [2] Group 1 - The Li Jiagou lithium mine project is now operational [2] - The company plans to disclose its third-quarter report for 2025 on October 28 [2]