In 1983, Goodenough and Thackeray developed LMO (LiMn₂O₄) based on the LCO system. With its unique spinel structure and three-dimensional lithium-ion diffusion channels, LMO exhibits excellent C-rate performance and offers simple processing and high safety. Its core advantage lies in the abundant reserves and extremely low cost of manganese resources, far superior to refined cobalt, making it a key material for the cost reduction of lithium batteries. After four decades of industry iteration, LMO has been replaced by ternary cathode materials in the high-end EV power battery sector, yet thanks to its cost-effectiveness, it remains firmly rooted in niche markets such as electric two-wheelers, power tools, and low-speed equipment. The overall industry presents a structural landscape characterized by tight supply of high-end modified products and involution among low-end competitors.

Recently, China’s EMM market has shown a slight decline followed by temporary stabilization, with a persistently weak, gradual downtrend atmosphere. Although the price decline has slowed down and no sustained sharp drops have occurred, market pessimism is strong and downward pressure remains.

Key takeaways: Rapid growth: LFP cathode materials (+60%), iron phosphate (+67%), and LiPF6 (+38%) saw significant production expansion, reflecting strong demand from power batteries and energy storage. New-type materials such as LMFP and composite sodium iron phosphate grew by over 90%, entering the commercialisation phase.

The CLNB 2026 Solid-State Battery Conference was held in Suzhou in April, where experts reached a consensus that 2026-2030 will be a critical period for industrialisation. The conference focused on breakthroughs in technology pathways such as oxide and sulphide, elaborating on progress in mass production of lithium sulphide, innovations in high-specific-energy cathodes, and upgrades in equipment and processes.

When a vehicle is no longer a one-time finished product but an evolving system, how will the industry's value anchor shift? In this sense, future new energy vehicles will resemble "Transformers" more than traditional vehicle products—their hardware form remains relatively stable, while their functions, experiences, and capability boundaries can be continuously reconfigured.

On January 19, Hunan Yuneng New Energy Battery Materials Co., Ltd. issued an announcement on the prospectus for a private placement of shares, intending to raise no more than 4.788 billion yuan, primarily for the construction of ESS battery cathode material capacity and to supplement working capital. According to the announcement, the fundraising projects are closely focused on ESS battery materials, including: an annual production capacity of 320,000 mt of LMFP, with a planned investment of 2.8 billion yuan—the product is compatible with various phosphate cathode materials and can flexibly meet market demands for ESS and power batteries; an annual production capacity of 75,000 mt of ultra-long cycle LFP, with a planned investment of 500 million yuan, focusing on enhancing the supply capability of long-cycle-life cathode materials required for ESS batteries; and an annual production capacity of 100,000 mt of iron phosphate, with a planned investment of 600 million yuan, to improve the self-supply system of upstream precursors and ensure supply chain stability and cost advantages.