[SMM Analysis]SMM Lithium Hydroxide Price Review This Week（8.21-8.28）

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.

According to the latest data from the General Administration of Customs, in July 2025, fruit shell charcoal imports amounted to 11,092.3 mt, down 3% MoM and 31% YoY. The average import price of fruit shell charcoal in June was $653.97/mt. In May, the average import price was $652.95/mt, with the average import price remaining flat MoM but still at a historically high level.

After the tariff shock and global trade adjustments, the copper market remains tight in 2025. Data shows that US refined copper inventories have surged to a 21-year high, following front-loaded imports by traders seeking to avoid potential tariffs and capture inter-market arbitrage.

According to Xinhua News Agency, this innovation delivers a two- to threefold improvement in energy density and endurance compared to traditional lithium-ion batteries. The report notes that this breakthrough comes at a time when demand for high-capacity, long-lasting batteries is surging across sectors such as electric vehicles, consumer electronics, robotics, and the low-altitude economy. Although energy density is crucial, enhancing it has remained technically challenging.

[SMM Analysis:How to Become Peru’s Largest Copper Mine? Only by Mining for Progress] With steadfast determination and a clear strategy, MMG is steadily enhancing its global copper production capacity and continuously optimizing operational efficiency. Through the outstanding performance of core projects like Las Bambas, the steady ramp-up of new mines, and the solid advancement of expansion plans, the company has not only achieved breakthroughs in both production and cost but has also deeply integrated into local community development in an innovative and responsible manner, building a new sustainable mining model that is enduring and mutually beneficial. These accomplishments paint a future blueprint filled with confidence and growth momentum, marking MMG’s steady progress toward a more influential leadership position in the global copper industry.

The chosen refinery site on Mission Island, previously home to a decommissioned power station, will have an annual output of 20,000 tonnes of lithium hydroxide (LCE)—sufficient to power half a million EVs yearly.

The immediate catalyst for the futures rally stems from supply concerns over mining license compliance issues in Jiangxi. Market sources indicate eight lithium mines in Jiangxi face rectification orders for environmental and licensing violations, with one major mine's license set to expire in early August under uncertain renewal prospects. Should renewal fail, this could force a temporary suspension, potentially cutting monthly supply by 10,000 LCE (lithium carbonate equivalent).

[SMM Analysis:Copper Consumption in New Energy Vehicles H1 2025] On July 16, the China Association of Automobile Manufacturers (CAAM) released data showing:January-June 2025 NEV production reached 6.968 million units, representing a 41.4% year-on-year increase.According to SMM estimates, full-year 2025 NEV production is forecast at 16.29 million units, with second-half production expected to reach 9.32 million units.

Ghana's government is preparing to renegotiate terms of the Ewoyaa lithium mining agreement after a precipitous drop in global lithium prices has jeopardized the project's economic feasibility.

[SMM Analysis:It Was Like Turning the Tide When All Hope Seemed Lost ] On the morning of June 27, 2025, China’s leading smelting companies concluded a landmark negotiation that will go down in the history of the copper industry: The mid-year TC/RC settlement between Antofagasta and Chinese smelters was finalized at $0.0/dmt and 0.0 cents/lb.