[6.6 Lithium Battery News] Ministry of Commerce Responds to "Cut-throat Competition" in the Automotive Industry: Strengthening Comprehensive Rectification and Compliance Guidance

[Chengxin Lithium: Indonesian Lithium Chemicals Project Expected to Begin Mass Supply in Q3]On June 5, Chengxin Lithium stated during an institutional survey that the company's newly constructed 60,000 mt lithium chemicals project in Indonesia had commenced trial production in 2024. Currently, certification for some core customers has entered the final stages, and mass supply is expected to begin in Q3. Additionally, the company is highly optimistic about the development prospects of solid-state batteries and has established a business presence in lithium metal, a key material for solid-state batteries. The company's lithium metal project has an existing capacity of 500 mt, and ultra-thin, ultra-wide lithium strips have achieved mass production. The company is also actively advancing the progress and construction of a newly planned 2,500 mt lithium metal capacity project. Furthermore, the company is conducting R&D on solid electrolyte materials.

[Ministry of Commerce Responds to "Cut-Throat Competition" in the Automotive Industry: Strengthening Comprehensive Regulation and Compliance Guidance]On the 5th, the Ministry of Commerce held a regular press conference where the spokesperson introduced recent key tasks in the commerce sector. A reporter raised questions regarding issues in the automotive industry. He Yongqian, the spokesperson for the Ministry of Commerce, stated that recently, relevant departments of the Ministry of Commerce have organized discussions with industry associations, research institutions, and related enterprises to gather opinions and suggestions and to explore ways to improve automotive circulation and consumption. Moving forward, the Ministry of Commerce will collaborate with relevant departments to continue strengthening the tracking, research, and policy guidance of the automotive consumer market, addressing bottlenecks and obstacles in automotive circulation and consumption, and better meeting residents' diverse and personalized consumption needs. Regarding the current phenomenon of "cut-throat competition" in the automotive industry, the Ministry of Commerce will actively cooperate with relevant departments to strengthen comprehensive regulation and compliance guidance, maintain a fair competitive market order, and promote the healthy development of the industry. (Cailian Press)

[Analyst: Trump's Tax Bill Could Cost Tesla $1.2 Billion]According to institutional reports, by year-end, Trump's massive tax bill will largely eliminate tax credits of up to $7,500 for certain Tesla car models and other EV buyers, seven years earlier than originally planned. JPMorgan analysts stated that this would result in an approximately $1.2 billion hit to Tesla's annual profits. After officially leaving his advisory role at the White House last week, Musk has been working to prevent the president from signing the tax bill, calling it "disgusting." Musk has been lobbying Republican lawmakers—including directly appealing to House Speaker Johnson—to retain EV tax credits in the legislation.

[Dawei Co.: "Exploration Report on Feldspar Ore in Dachongli Mining Area, Guiyang County, Hunan Province" Mineral Resource Reserves Approved for Filing]Dawei Co. (002213) announced that its wholly-owned subsidiary, Guiyang Dawei Mining, recently received a reply from the Hunan Provincial Department of Natural Resources regarding the "Exploration Report on Feldspar Ore in Dachongli Mining Area, Guiyang County, Hunan Province." Upon review, the report complies with relevant regulations and has been approved for filing. The approval and filing of the resource reserves review for the Dachongli mining area in Guiyang County marked a significant advancement in the company's lithium battery new energy industry project in Chenzhou, Hunan. (Cailian Press)

[Fulin Precision Machining: Subsidiary Signs Supplemental Agreement with CATL] Fulin Precision Machining (300432.SZ) announced that its subsidiary, Jiangxi Shenghua, had signed a "Supplemental Agreement" with CATL to amend the original "Business Cooperation Agreement." The main contents include: CATL will pay a prepayment of 500 million yuan to Jiangxi Shenghua before May 31, 2025, to support the construction of its Jiangxi base (with a capacity of 160,000 mt/year) and Sichuan Phase III (with a capacity of 200,000 mt/year). Jiangxi Shenghua commits to completing the construction of the Jiangxi base before April 30, 2025, and achieving an annual production capacity of 80,000 mt of LFP cathode materials by June 30, 2025. Sichuan Phase III will accelerate the construction to achieve an annual production capacity of 200,000 mt of LFP. Jiangxi Shenghua commits to prioritizing 100% of its production capacity from 2025-2029 for materials that meet CATL's requirements, and CATL commits to a procurement volume of no less than 80% of Jiangxi Shenghua's committed capacity each year. This agreement will take effect from the date of the original contract's effectiveness after being sealed by both parties.

[Luzhou: Strives to Break Through 5 Billion Yuan in New Energy Vehicle Supporting Industries, Offers Subsidies of Up to 3,500 Yuan per Person for NEV Purchases] The "Ten Measures to Further Promote the Application of New Energy Vehicles in Luzhou City" has been issued recently, aiming to achieve a breakthrough of 5 billion yuan in the scale of the city's new energy vehicle supporting industries this year, with an automobile ownership of 65,000 units and 29,000 charging piles. The measures clarify that efforts will continue to increase sales promotions and subsidies for passenger NEVs, with a maximum subsidy of 3,500 yuan per person for individual consumers who purchase passenger NEVs.