Raw material side, spot lithium carbonate and nickel sulphate prices fluctuated this week, while cobalt sulphate prices continued to decline.

China's fuel cell vehicle sales hit a record high in Dec 2025 (3,500+ units), but plunged to under 100 in early 2026. The year-end surge was driven by subsidy deadline deliveries, not real demand. As the 15th Five-Year Plan shifts from purchase subsidies to usage-based incentives, the industry must now focus on cost reduction and commercial viability.

The China Automobile Dealers Association released the latest "Automobile Consumption Index": the Automobile Consumption Index in May 2026 was 81, a slight increase MoM, and the automobile market is expected to maintain a relatively stable operating trend in June. According to the association's analysis, the automobile market in June exhibited a structural divergence pattern characterized by "cooling demand, declining foot traffic, and strengthening transactions." The fading of holiday dividends and the impact of high temperatures led to pullbacks in both new demand and offline foot traffic, and overall market momentum slowed down compared to the concentrated surge in May. However, dealers are expected to ramp up mid-year sales promotions, and the concentrated conversion of previously accumulated intent orders will continue to drive up end-user transactions.