[SMM Analysis] This article introduces knowledge related to energy storage in a straightforward manner by addressing three questions: What is energy storage? Why do we need energy storage? How is energy storage implemented? At its core, energy storage is a technological system designed to address the temporal and spatial mismatches in electricity supply and demand, enabling the transfer of energy across time through forms such as chemical energy (e.g., batteries) and potential energy (e.g., pumped hydro storage). Its core architecture comprises four major modules: energy storage battery cells serve as the energy carriers, with the LFP route dominating the market; PCS converters facilitate AC-DC conversion; the BMS system monitors the safety of tens of thousands of battery cells in real time; and the EMS system optimizes charging and discharging strategies based on electricity price signals. The primary demand for energy storage covers the power generation and grid side, as well as the demand side. Current technological iterations focus on large-capacity battery cells, such as the 587Ah cell from CATL and the 684Ah cell used in combination by Sungrow.

【Cathode Material Weekly Report】 ► An Additional 5 Billion Yuan After 32 Billion! CATL Subsidiary Invests Again in Yichang, Hubei ► China's Domestic Lithium Resource Output to Increase by Over 30% in 2024 ► Annual Production and Sales of 40,000 mt! New Updates on a Battery Materials Project in Wangcheng, Hunan ► 10 Billion Yuan! Updates on CNMC Zhongshe Zhengyuan's 60,000 mt Ternary Cathode Material Precursor Project ► 10 Billion Yuan Acquisition for a Publicly Listed Firm in the Lithium Carbonate Sector! ► Tianqi Lithium: Conducting Impairment Tests on Lithium Hydroxide Projects Based on the Latest Developments

[40,000 mt LMFP Cathode Material Project Is Expected to Begin Production Soon] Recently, the construction site of the Mengxing Nano project has been bustling with activity. The exterior and outdoor works of the project are being finalized and are expected to be delivered for use in April 2025. Once completed and operational, the project is expected to produce and sell 40,000 mt of LMFP cathode material annually, achieving an annual output value of approximately 2 billion yuan and generating annual tax revenue exceeding 80 million yuan. In the future, it will become one of the landmark enterprises for the development of advanced cathode materials in Wangcheng.

[SMM Analysis: Lithium Battery Policy Interpretation] Major Policy Adjustment in the Lithium Battery Industry at the Beginning of the Year - "Catalogue of Technologies Prohibited and Restricted from Export in China

Hunan Yuneng New Energy Battery Materials Co., Ltd. announced an invention patent on January 3, 2025, involving a high-conductivity LMFP precursor, LMFP, and its preparation method. The publication number of the patent is CN119240650A, and the application date is November 22, 2024. The inventors include Tao Chen, Zhilin Long, Fenglei Yu, Jiangtao Cheng, Tao Lin, and Ningxin Zhao. This technology has significant applications in the field of lithium-ion battery materials. The preparation method involves adding manganese source, iron source, and phosphorus source into a nitric acid solution, followed by the addition of nano-silicon dioxide, and conducting a constant-temperature hydrothermal reaction to obtain an intermediate. Subsequently, the intermediate is soaked in an HF solution to finally obtain the LMFP precursor. The precursor is combined with glucose-carbonized carbon nanotubes and a lithium source through a wet ball milling and calcination process. The resulting LMFP exhibits excellent specific capacity and C-rate performance, along with high conductivity.

["Prohibited and Restricted Export Technology Catalogue" Proposes to Add Lithium Battery Cathode Material Preparation and Lithium Extraction Technologies; Related Companies Continue to Monitor] ① The "Catalogue of Technologies Prohibited and Restricted from Export in China" proposes to add restrictions on the export of lithium battery cathode material preparation technologies and lithium extraction-related technologies. Several related publicly listed firms responded to reporters from Cailian Press, stating that they are currently assessing the situation; ② Lanxiao Technology told reporters that there is usually a certain distinction between "restricted export" and "prohibited export." Meanwhile, the draft for public consultation also highlights that China's salt lake lithium extraction technology holds a significant leading position globally. (Cailian Press)

On January 2, 2025, China’s Ministry of Commerce issued a file titled “Notice on Adjustments to the Public Consultation for the Catalogue of Technologies Prohibited or Restricted from Exporting from China.” The notice mentions the potential implementation of export restrictions on battery and lithium processing related technologies. The deadline for feedback submission is February 1, 2025.

**LMFP: Hunan Yuneng Invents Precursor** On December 31, 2024, Hunan Yuneng New Energy Battery Materials Co., Ltd. successfully developed and publicly disclosed an innovative patent titled "A Manganese Iron Phosphate Precursor and Its Preparation Method." Through chemical and solid-phase reactions involving phosphoric acid solution, iron powder, manganese carbonate, surfactant, and UiO-66-NH2/Nb2CTx composite material, a manganese iron phosphate precursor with uniform particle size, good morphology, and porous structure was developed. This precursor, when used to prepare LMFP cathode materials, can form a larger contact area with the electrolyte, thereby enhancing ion and electron transport performance, enabling lithium batteries to achieve higher capacity and superior cycling performance.

[Ronbay Technology: Sodium-Ion Battery Expected to Achieve Large-Scale Implementation Next Year, Advancing Cooperation with Downstream Humanoid Robot Clients] ① The manganese iron lithium product has secured orders for thousands of units of vehicles from leading power battery enterprises; recently, a bulk procurement agreement for sodium-ion battery cathode materials has been signed with a sodium-ion battery enterprise, and large-scale implementation is expected next year. ② The second phase capacity of the South Korea factory is undergoing commissioning and is expected to commence production in early 2025; the first phase of the European factory is likely to be completed by the end of 2025, and the registration of the North American subsidiary has been completed. (Sci-Tech Innovation Board Daily)

In September 2024, China's Mn3O4 production increased both MoM and YoY.