[SMM Analysis] From August 22 to 26, 2025, the U.S. Internal Revenue Service (IRS) issued clarifications via NPR, CNBC and other outlets announcing new adjustments to the soon-expiring electric-vehicle (EV) tax credit—worth up to $7,500. Consumers who enter into a legally binding purchase contract with a dealer and make any form of down payment or trade-in by September 30, 2025 (inclusive) will lock in the federal EV tax credit; the actual delivery date after that will no longer affect eligibility.

[SMM Analysis] From August 22 to 26, 2025, the US Internal Revenue Service (IRS) issued clarification notices through platforms such as NPR and CNBC, announcing new adjustments to the soon-to-expire EV tax credit policy (up to $7,500). As long as consumers sign a legally binding car purchase contract with a dealer and make any form of down payment or trade-in by September 30, 2025 (inclusive), they can lock in the federal EV tax credit. The vehicle delivery date thereafter will no longer affect tax credit eligibility.

In August 2025, China's ternary cathode material production increased 6.99% MoM but declined 5.07% YoY.

In August 2025, SMM cobalt sulphate production decreased 1.56% MoM but rose 6.26% YoY.

In August 2025, China's monthly total lithium carbonate production hit a new record, surpassing the 85,000 mt mark, up 5% MoM and surging 39% YoY. The sustained production growth was primarily driven by the spodumene segment, with toll processing orders for non-integrated lithium chemical plants in full swing. Meanwhile, buoyed by robust downstream demand, the industry's overall supply capacity also improved.

According to the project restart strategy, the Finniss lithium project holds 10.7 million tonnes of ore reserves (averaging 1.29% Li₂O) and 48.5 million tonnes of mineral resources (averaging 1.26% grade). A restart study released in May 2025 indicates that the project can achieve an annual production capacity of 205,000 tonnes of spodumene concentrate (SC6), with FOB operating costs estimated at A$690-785 per tonne. The operation will adopt a purely underground mining method across three orebodies—BP33, Grants, and Carlton—with BP33’s mining cost projected at just A$63-72 per tonne.

In August, the domestic production of iron phosphate showed a significant growth trend, with a month-on-month increase of 5% and a year-on-year increase as high as 59%, clearly indicating an expanding production capacity.

August 29 (SMM) - Northern ports: Australian lump ore was at 40.3-40.8 yuan/mtu, flat WoW; South African semi-carbonate ore stood at 34.2-35.7 yuan/mtu, down 1.15% WoW; Gabonese ore was at 39.1-39.9 yuan/mtu, unchanged WoW; South African high-iron ore was at 29.4-29.9 yuan/mtu, flat WoW; South African medium-iron ore was at 35.1-35.6 yuan/mtu, steady WoW. Southern ports: Australian lump ore was at 39.8-40.5 yuan/mtu, flat WoW; South African semi-carbonate ore was at 36.3-36.8 yuan/mtu, down 0.54% WoW; Gabonese ore was at 39.6-40.1 yuan/mtu, unchanged WoW; South African high-iron ore was at 30.5-31 yuan/mtu, steady WoW; South African medium-iron ore was at 36.5-37.2 yuan/mtu, flat WoW. Manganese ore market activity declined slightly, with sluggish inquiries. The manganese ore market operated in consolidation.

In August 2025, the solid-state battery market witnessed significant progress. With the launch of SAIC's MG4 semi-solid-state battery vehicle, the solid-state battery sector attracted widespread attention, potentially rewriting the mass production timetable. Domestic and overseas enterprises achieved remarkable results in technological R&D and project advancement, with continuous technological breakthroughs, accelerated project implementation, and gradually clarified market demand.