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 With the rapid popularization of high-energy-density ternary materials, LMO has gradually withdrawn from the mainstream passenger vehicle power battery track, and shifted to low-speed lithium batteries and consumer electronics fields that prioritize cost and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.

Recently, a relevant website released the environmental impact assessment announcement for the "Shanxi Lithium Battery Recycling, Crushing, and Powdering Project (First Phase)" undertaken by a company in Shanxi. According to the public announcement, the project has a total investment of 47 million yuan and is located in the Songcun Industrial Park, Zhangzi County, Changzhi City, Shanxi Province. It plans to construct 3 lithium battery powdering and crushing production lines, with an annual output of 20,000 tons of graphite powder, copper granules, aluminum granules, and lithium cobalt oxide powder.

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.

A KAIST research team has found that succinonitrile (CN4), an electrolyte additive long used to improve battery stability and lifespan, can instead become a key factor causing performance degradation in high-nickel batteries, despite its beneficial effects in LCO (lithium cobalt oxide) batteries.

This week, the prices of cobalt sulfate and nickel sulfate have started to rise, and the price of lithium carbonate has also continued to increase.

This week, the price of cobalt sulfate experienced a slight increase, while the price of nickel sulfate saw a minor decrease, and the price of lithium carbonate oscillated.

This week, cobalt sulphate prices rose slightly, nickel sulphate prices dropped slightly, and lithium carbonate prices fluctuated. The price per % lithium for LFP black mass fluctuated along with lithium chemicals this week, and demand declined at the current stage as most enterprises had engaged in large-scale purchases last week. Meanwhile, due to continued volatility in lithium carbonate prices this week, a price spread emerged between upstream and downstream quotations.

This week, trading activity in the lithium cobalt oxide (LCO) market rebounded, with the overall supply-demand relationship remaining stable. Supply side, quotations for standard-grade products generally held above 370,000 yuan/mt, supported by persistently high raw material prices such as cobalt chloride and Co3O4, providing significant cost support. Demand side, battery cell manufacturers are still negotiating orders with downstream end-users. Affected by consecutive increases in raw material prices, some enterprises are evaluating the switch from LCO to ternary cathode materials, leading to a certain decline in new orders recently. In the short term, LCO prices are expected to remain stable, with limited upward momentum. Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lü Yanlin 021-20707875 Zhou Zhicheng 021-51666711 Zhang Haohan 021-51666752 Wang Zihan 021-51666914 Wang Jie 021-51595902 Xu Yang 021-51666760 Yang Lianting 021-51595835 Wang Zhaoyu 021-51666827

Recycling Industry Events This Week (November. 10-14)

【Anhui Project for Annual Tiered Utilization of 100,000 Tons of Vehicle Power Batteries Lands】 Recently, the second environmental impact assessment public notice was released for the relocation and technical renovation project for the tiered utilization of new energy vehicle power batteries by a company in Anhui. The following is the announcement content: This project is a comprehensive recycling and utilization project for renewable resources. After the relocation and technical renovation, it will form an annual production scale for the recycling and utilization of 100,000 tons of new energy vehicle power batteries, with the comprehensive utilization scale remaining unchanged. According to the plan, the project will be constructed in two phases: the first phase with an annual recycling and utilization capacity of 40,000 tons, and the second phase with 60,000 tons of new energy vehicle power batteries. This includes 3,000 tons/year of lithium cobalt oxide batteries (individual units), 6,500 tons/year of ternary lithium-ion batteries, 4,000 tons/year of lithium iron phosphate batteries, 1,500 tons/year of lithium manganate batteries, 30,000 tons/year of cathode sheets (10,000 tons/year in the first phase), and 55,000 tons/year of anode sheets (15,000 tons/year in the first phase).