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 After four decades of industry iteration, LMO has been replaced by ternary cathode materials in the high-end EV power battery sector, yet thanks to its cost-effectiveness, it remains firmly rooted in niche markets such as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.

The U.S. Department of Defense plans to relaunch a cobalt procurement tender worth up to USD 500 million at the end of November 2025, after the previous tender was canceled in October due to issues in the technical documents. The new tender is expected to be awarded in February 2026 and aims to purchase up to 7,500 tonnes of alloy-grade cobalt over the next five years, with bids to be sought from suppliers including Vale (Canada), Sumitomo Metal Mining (Japan), and Glencore’s Nikkelverk (Norway). The tender is being reopened against the backdrop of sharply rising cobalt prices. As the Democratic Republic of Congo implements export quota controls and supply tightens while demand from the electric vehicle sector recovers, the price of cobalt sulfate in China has surged about 335% this year, equivalent to around USD 58,200 per tonne of metal cobalt—significantly higher than at the start of the year. Analysts note that cobalt prices could climb further as the DRC’s quota system continues to affect supply in 2026–2027. If the U.S. government follows through with this procurement—the first large-scale cobalt purchase since 1990—it would add further support to the market. Meanwhile, CMOC, the world’s largest cobalt producer, has warned that such high prices may lead to demand destruction or accelerate substitution trends.