Two Major Super Battery Plants Terminated

[SMM Daily Review: Spot Lithium Carbonate Prices Fell Sharply on March 3] The SMM battery-grade lithium carbonate index price fell sharply from the previous working day. Futures side, after the most-traded contract opened at 170,000 yuan/mt in the morning session, it fluctuated downward throughout the session and at one point touched the limit-down price of 150,800 yuan/mt. It then rebounded slightly and hovered around 154,000 yuan/mt, but weakened again after the midday session and ultimately stayed locked at limit-down through the close. Open interest in the most-traded contract fell by about 39,000 lots from the previous trading day. Actual transactions, upstream lithium chemical plants’ willingness to sell spot orders remained weak, with a clear sentiment to hold back sales. After prices fell rapidly in the morning, downstream material plants’ purchase willingness strengthened markedly, and most enterprises adopted a laddered order-placement strategy to buy on dips. Overall, market inquiries were active and transaction momentum increased significantly.

Japan’s major battery company GS Yuasa International Ltd. announced the launch of the “Battery Stable Power Supply Assurance Program” and is expected to build an ESS battery manufacturing plant north of Tokyo with an annual capacity of 2 Gwh. The project’s total investment is 70.3 billion yen (approximately 3.13 billion yuan), and it is expected to begin production in October 2028, when it will become one of Japan’s largest battery plants.

According to industry sources on the 3rd, POSCO Argentina, a subsidiary of POSCO Holdings, will commence operations of the first-phase lithium brine plant by the end of this month, despite partial delays caused by supply issues involving key replacement components. Initial utilization rates are expected to start at around 60%, with full-scale operations targeted after the third quarter following equipment optimization and operational improvements. The company anticipates reaching near full capacity from July to August.