[SMM New Energy News Flash] Shandong Fengyuan Chemical Co., Ltd. announced that its wholly owned subsidiary, Fengyuan Lithium Energy, will terminate its planned investment in a 50,000-ton high-energy lithium battery cathode materials project in Gejiu, Yunnan. The project, valued at RMB 1.25 billion with an 18-month construction cycle, was originally intended to leverage local lithium resources and strengthen the upstream supply chain. However, due to changes in the policy environment and delays in securing approvals, the project failed to make substantive progress. With limited funds already invested and no further commitments planned, the board decided to terminate the investment to control risks and protect shareholder interests. The termination is not classified as a related-party transaction or a major asset restructuring and will not significantly impact the company’s operations or finances. In its 2025 half-year report, Fengyuan reported revenue of RMB 723 million, up 21.23% year-on-year, but posted a net loss of RMB 243 million, highlighting ongoing financial challenges.