In 1983, Goodenough and Thackeray developed lithium manganate (LiMn₂O₄, LMO) on the basis of the lithium cobalt oxide system. With a unique spinel structure and three-dimensional lithium-ion diffusion channels, LMO delivers excellent rate capability, along with simple production procedures and high safety performance. Its core advantage lies in abundant manganese resources and extremely low costs, which are far superior to cobalt-based precious materials, making LMO a key material for the cost reduction of lithium-ion batteries. After four decades of industrial iteration, LMO has been phased out of high-end passenger vehicle power batteries by ternary materials. However, relying on outstanding cost performance, it has firmly occupied segmented markets such as electric two-wheelers, power tools and low-speed electrical equipment. The industry currently presents a structural divergence, with tight supply of high-end modified LMO products and intense homogenized competition among low-end products. 1. Technical Origin: Distinct Performance Advantages and Incurable High-Temperature Defects LMO has a theoretical specific capacity of 148mAh/g and a practical mass-production capacity of around 120mAh/g, with a working voltage of approximately 4.0V. Japanese enterprises took the lead in commercializing LMO in the 1990s. Early manufacturers including Sanyo and Panasonic widely applied LMO to power tools and household devices that prioritize safety. In 2010, the Nissan Leaf adopted a modified LMO cathode system, becoming one of the early large-scale mass-produced pure electric vehicles. It entered the entry-level new energy vehicle market with its cobalt-free, high-safety and low-cost characteristics. Nevertheless, LMO has inherent technical bottlenecks, primarily weak high-temperature cycling stability. When the ambient temperature exceeds 55℃, manganese dissolution and disproportionation reactions easily occur, leading to rapid capacity decay. The dissolved manganese ions also damage the solid electrolyte interphase (SEI) film on the negative electrode, continuously impairing battery service life. The industry has adopted modification methods such as element doping and surface coating to optimize performance, which can only alleviate capacity attenuation rather than completely solve the problem. With the rapid popularization of high-energy-density ternary materials, LMO has gradually withdrawn from the mainstream passenger vehicle power battery track, and shifted to low-speed lithium batteries and consumer electronics fields that prioritize cost and safety over extreme energy density. 2. 2026 Market Status: Cost-Driven Pricing and Sustained Structural Differentiation Currently, LMO prices are highly correlated with lithium carbonate quotations, which account for 60% to 70% of the total production cost of LMO. Fluctuations in lithium carbonate prices directly drive synchronous adjustments in the LMO market. The overall operating rate of the industry remains stable, while internal differentiation is prominent. High-end modified LMO products with long-cycle and high-voltage performance enjoy stable demand and tight supply. By contrast, ordinary low-end LMO products face severe homogenization and fierce market competition, squeezing profit margins of small and medium-sized manufacturers, most of whom maintain slim profits or break-even operations. The demand structure is clear and stable. Electric two-wheelers serve as the largest downstream application scenario, accounting for over 60% of total demand and forming the fundamental support of the LMO industry. Demand for power tools remains rigid and steady. Benefiting from high safety and low cost, LMO demand in small and medium-sized energy storage sectors is expanding steadily, becoming a major growth driver for the industry. Overall downstream demand maintains stable operation without significant fluctuations. 3. Market Outlook: Consolidate Segmented Market Foundation and Expand Manganese-Based Material Layout In the short term, LMO prices will continue to fluctuate in line with lithium carbonate trends and downstream restocking rhythms. High-end modified products are expected to maintain structural premiums due to high production and technical barriers. In the medium term, the industry pattern will continue to optimize. Leading enterprises will dominate the market relying on advantages in technology, production capacity and cost, while backward low-end capacity will be gradually eliminated, further increasing industrial concentration. In the long run, conventional LMO is unlikely to re-enter the high-end passenger vehicle power battery track, but its rigid demand in four core segmented fields including electric two-wheelers, low-speed vehicles, power tools and small-to-medium energy storage will remain solid. Meanwhile, the manganese-based industry keeps iterating. Manganese elements continue to penetrate the mainstream new energy market through lithium manganese iron phosphate and ternary materials. The overall importance of manganese-based materials in the lithium battery industrial chain continues to rise.

On February 9, MGL announced that the company plans to invest 929 million yuan to build an annual 30,000-ton lithium-ion battery cathode material project. The first phase will involve an investment of 737 million yuan, while the second phase will require 192 million yuan. The project is expected to achieve an annual production capacity of 5,000 tons of high-voltage lithium cobalt oxide, 10,000 tons of NCA material, and 15,000 tons of ultra-high nickel ternary material. The total construction period for the project is 36 months, divided into two phases: the first phase will take 21 months, and the second phase will take 15 months.

Last week's announcement of import and export restrictions in the Congo (DRC) has led to a continuous increase in cobalt sulfate prices. However, due to insufficient short-term demand support, the price increase has been relatively limited. Nickel sulfate prices have remained essentially stable, while lithium carbonate prices have shown a slight rebound and are fluctuating.

【100,000-ton LFP Project Nears Operational Launch】 The industrial park project will be implemented in two phases, featuring multiple advanced cathode material production lines, including: 100,000-ton lithium manganate (LMO) cathode material lines 40,000-ton ternary (NCM/NCA) cathode material lines 10,000-ton lithium cobalt oxide (LCO) cathode material lines A 100,000-ton LFP cathode material production line (soon to commence operations)

This week in wet process recycling: Recycled materials: Cobalt sulfate prices continued to decline this week, nickel salt prices remained stable, while lithium salt prices saw a minor rebound. Recovery rates for ternary and lithium cobalt oxide (LCO) black mass continued to fall, while lithium content in lithium iron phosphate (LFP) black mass remained temporarily steady. Taking ternary black mass as an example: Currently, due to the prolonged low price of lithium carbonate, the revenue contribution from lithium is lower than that from nickel sulfate and cobalt sulfate under these conditions. Therefore, most ternary wet-process enterprises now price the nickel-cobalt and lithium recovery rates in ternary black mass separately. For instance, the current recovery rate for nickel-cobalt in ternary electrode sheet black mass is 74-76%, while the lithium recovery rate is 71-74%.

【SMM Analysis】Recycling Industry Events This Week (Jun. 9-13): This week's recycling industry events.

[Canmax: Solid-State Battery Project Progressing Smoothly, Some Customers Have Achieved Sales After Evaluation] Canmax stated on an interactive platform that the company has developed new cathode materials, including high-voltage lithium cobalt oxide (LCO), high-nickel ternary materials, lithium-rich manganese-based materials, and spinel nickel-manganese materials, centered around the core requirements of "high specific energy, high safety, high C-rate, long cycle life, and low cost" for battery cell material systems. These products are suitable for applications in solid-state lithium batteries and semi-solid-state lithium batteries. The lithium-rich manganese-based and other cathode materials developed by the company have completed R&D trials and been sent to multiple solid-state battery customers for evaluation, demonstrating high specific capacity and good stability within customer systems. Among them, some customers have achieved sales after evaluation.

[Fujian: Supporting Local Auto Consumption Promotion Activities with Overlapping Car Purchase Incentives] The General Office of Fujian Provincial People's Government issued the "Implementation Plan for Fujian Province's Consumption Stimulation Special Action," which proposes measures to support auto consumption. It encourages localities to develop aftermarket consumption such as auto modification, leasing, competitions, exhibitions, RV camping, and classic cars. Local governments are urged to cultivate and expand used car dealerships, promote "reverse invoicing" for used car sales, and accelerate the transition from brokerage to dealership models. Support will be provided for local auto consumption promotion activities with overlapping car purchase incentives. By the end of 2025, the province aims to have cumulatively built over 80,000 public charging piles, achieving "full township coverage" of public charging infrastructure. (Cailian Press) [XPeng Motors' He Xiaopeng: "Price Wars" Will Intensify in One Year During the Next Five Years] He Xiaopeng, Chairman of XPeng Motors, stated that the current "price war" is not yet at its most intense, predicting it may escalate further in one year during the next five years. "XPeng's priorities are: first, not to 'compete on price' but to 'compete on technology'; second, to expand globally beyond China; third, to transform new quality productive forces toward embodied intelligence." (Cailian Press) [MIIT Releases 2025 Regulatory Formulation Work Plan] The Ministry of Industry and Information Technology (MIIT) released its 2025 regulatory formulation work plan. Key items include submitting the "Interim Measures for the Comprehensive Utilization of Retired Power Batteries from NEVs" and the "Interim Measures for Total Control of Rare Earth Mining and Smelting/Separation" for ministerial review within the year. Drafting projects under urgent development include the "Management Measures for Recycling and Comprehensive Utilization of Lithium-ion Batteries for E-bikes" and the "Implementation Rules for Domestic Entities Leasing Foreign Satellite Resources." (Cailian Press) [Geely Group's Battery Subsidiary Jiyao Tongxing Passes New National Standard Testing for All Brick Battery Cell Products] Cailian Press reporters learned that all brick battery cell products from Jiyao Tongxing, a battery subsidiary of Geely Group, have obtained certification under GB38031-2025 "Safety Requirements for Power Batteries Used in Electric Vehicles" (hereinafter referred to as the "New National Standard"). Beyond meeting this standard, the brick cells also passed a more stringent military-grade safety protocol established by Jiyao Tongxing—remaining smoke-free, flame-free, and explosion-free after being simultaneously pierced by eight 0.005mm steel needles and left static for one hour. Industry note: The power battery "New National Standard" was promulgated by MIIT on March 28, 2025, and will take effect on July 1, 2026. It is regarded as the most stringent power battery safety standard to date, aiming to establish a comprehensive safety framework centered on "no fire, no explosion." [Canmax: Solid-State Battery Project Progresses Smoothly, Some Customers Have Achieved Sales After Evaluation] Canmax stated on an interactive platform that the company has developed new cathode materials, including high-voltage lithium cobalt oxide (LCO), high-nickel ternary cathode, lithium-rich manganese-based, and spinel nickel-manganese materials, centered around the core requirements of "high specific energy, high safety, high C-rate, long cycle life, and low cost" for battery cell material systems. These products are suitable for applications in solid-state and semi-solid-state lithium batteries. The lithium-rich manganese-based and other cathode materials developed by the company have completed R&D trials and been sent to multiple solid-state battery customers for evaluation, demonstrating high specific capacity and good stability within customer systems. Among them, some customers have achieved sales after evaluation. (Cailian Press) [New-Type Fuel Cell Prototype Device Validated with Triple Energy Density] Institutions including the Massachusetts Institute of Technology (MIT) in the US proposed a potentially breakthrough new technology solution and experimentally validated a new battery prototype device, which can achieve an energy density per unit weight more than three times that of the lithium-ion batteries currently used in electric vehicles (EVs). This achievement is expected to advance the electrification of transportation. Relevant research findings were published in the *Joule* journal on the 27th. (Cailian Press) Related Readings: [SMM Analysis] Domestic Lithium Carbonate Imports in April 2025 Released Battery Material Import and Export Data for April Released: Both Spodumene and Lithium Carbonate Imports Increased, with the Latter's Exports Surging! [SMM Special Report] Cobalt Product Quotations Collectively Decline: Refined Cobalt Falls by 6,200 Yuan, Smelters' Willingness to Sell Cobalt Intermediate Products Increases [Weekly Observation] Spot Price of Refined Cobalt Falls [SMM Weekly Review of Refined Cobalt Market] [SMM Weekly Review] Lithium Carbonate Prices Continue to Decline, Short-Term Market Remains Under Pressure [SMM Analysis] Can Titanium-Doped Iron Phosphate Be the Perfect Upgrade for the High-End Market? [SMM Analysis] China's Lithium Hydroxide Exports Reached 4,222 mt in April, Basically Flat MoM [SMM Analysis] China's Cobalt Intermediate Product Imports Increased Slightly in April [SMM Analysis] China's Unwrought Cobalt Exports and Imports Both Rose Sharply in April 2025 [SMM Analysis] Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM [SMM Analysis] Both Imports and Exports of Artificial Graphite Increased MoM in April [SMM Data] Lithium Hexafluorophosphate (LiPF6) Import and Export Data for April 2025 [SMM Analysis] Analysis of Ternary Cathode Precursor Exports in April [SMM Analysis] Import and Export Data for Ternary Cathode in April Released: Imports Up 37% MoM, Exports Up 13% MoM [SMM Announcement] Adjustments to Weekly Data Points for Lithium Carbonate Before and After the Labour Day Holiday Driven by Multiple Positive Factors!The auto parts sector has seen a wave of "limit-up" rallies, with over 12 stocks hitting their daily price limits! [Hot Stocks] Refined cobalt quotes have slightly recovered, while Co3O4 prices continue to decline. The market awaits the follow-up to the June DRC ban. [Weekly Observations] [SMM Industry Insights] Global cobalt industry chain changes and Chinese market outlook following the DRC's cobalt export ban - Key points from the special speech by Wang Cong, General Manager of SMM Industry Research. The temporary suspension of tariffs has stimulated lithium carbonate futures to rise by over 3%. Can the expectation of a rush in exports help lithium carbonate "stand up"? [SMM Flash News] Retail sales growth of passenger vehicles in April reached a new decade-high, with auto production and sales in the first four months exceeding 10 million for the first time! [SMM Special Report]

This week, lithium salt prices fluctuated, while nickel and cobalt salts saw minor declines. The coefficients for ternary and lithium cobalt oxide black powder continued to drop. For example, the coefficient for ternary cathode black powder currently ranges between 74-77%, and that for ternary battery black powder is 71.5-73.5%. Lithium points for lithium iron phosphate (LFP) cathode black powder stand at 2,500-2,700 yuan per lithium point, while LFP battery black powder ranges from 2,200-2,400 yuan per lithium point. Suppliers and traders remain firm on pricing, though some crushing plants are holding back inventory due to thin profit margins, leading to weaker market transactions compared to April.

Lithium Salts: Lithium salt prices saw gradual declines this week, while nickel and cobalt salt prices remained stable. Ternary and lithium cobalt oxide black powder coefficients began to dip slightly. Taking ternary black powder as an example: the current coefficient for ternary cathode black powder stands at 75-77%, and ternary battery black powder at 72-74%.