[SMM Analysis] Demand in the LFP industry chain continues to rise, but the supply-side response is significantly lagging behind. The most notable feature of the current market is that tight supply is rapidly transmitting from bottom to top, forming a sequential inversion of "battery cell production schedule > LFP cathode production schedule > iron phosphate production schedule." The slow release of LFP capacity and the iron phosphate industry segment have become the most prominent bottlenecks in the entire chain.

Integrals Power, a British battery technology firm, will take part in a £2 million, 30-month battery innovation project funded by the UK government, supplying hundreds of kilograms of its self-developed lithium manganese iron phosphate (LMFP) cathode material. Led by battery supplier Denchi, the project seeks to develop advanced battery technologies for defence and electric vehicle applications. Pouch and cylindrical cells will be manufactured at the UK Battery Industrialisation Centre (UKBIC), before being assembled into battery packs for validation. Integrals Power states its LMFP material eliminates the need for critical minerals such as cobalt and nickel, and can be produced using feedstocks sourced from Europe and North America. Compared with conventional LFP, it delivers up to approximately 20% higher energy density, alongside superior safety, cost competitiveness and enhanced performance, making it suitable for defence, automotive and other use cases. In the initial phase, the project will adopt Denchi’s existing military BB-2590 battery pack design. The original NMC (nickel manganese cobalt) cells will be replaced with LMFP cells for validation and testing in applications including military radios, sensors, unmanned aerial vehicles (UAVs) and backup power supplies.

[SMM Analysis: Phosphate Ore Import and Export Half-Year Review, 2026 H1 China's Phosphate Ore Imports Surge to One Million Tons, Exports Triple] In H1 2026 (from January to June), China's phosphate ore imports reached 998,200 tons, up 29.66% YoY; exports stood at 133,900 tons, up 225.91% YoY; net imports were 864,300 tons.

SMM Cobalt Morning Brief: This week, the cobalt industry chain overall consolidated on a subdued note. Refined cobalt spot prices remained stable temporarily. Traders resumed offering, but transactions were still dominated by essential stockpiling, while end-use demand had not yet clearly recovered. Cobalt intermediate products were boosted by news related to DRC. Miners' offers stayed firm, but downstream smelter acceptance was limited, and some traders lowered prices to sell and facilitate deals. Transactions in the cobalt sulphate, cobalt chloride, and Co3O4 markets remained sluggish. Downstream wait-and-see sentiment was strong, and restocking demand had not yet materialized. Cobalt powder prices continued to edge lower, and off-season pressure on hard alloys persisted. Overall, cobalt chain prices may mainly consolidate in the short term, and subsequent recovery will likely need to wait for a rebound in cobalt salt valuations and improvement in downstream demand.

Ronbay Technology expects net profit attributable to shareholders of RMB 1.0-1.2 billion for the first half of 2026, compared with a loss a year earlier. The company said earnings recovered on the back of stronger demand in the new energy sector. During the period, its ternary cathode business improved profitability with higher overseas shipments, while its LMFP cathode business reached full production and sales. Its sodium-ion cathode materials also entered the stage of large-scale commercial shipments.

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.