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 delivers excellent C-rate performance while featuring simple processing and high safety. Its core advantage lies in abundant manganese reserves and extremely low cost—far superior to the precious metal cobalt—making it a key material for cost reduction in lithium batteries. Over four decades of industry iteration, although LMO has been replaced by ternary cathode materials in the high-end passenger EV power battery sector, it has maintained a solid foothold in niche markets such as electric two-wheelers, power tools, and low-speed equipment, driven by its cost-performance edge. The industry now exhibits a structural landscape marked by tight supply of high-end modified products and intense involution in the low-end segment.

1. Technology Origins: Clear performance strengths, persistent high-temperature weakness

LMO has a theoretical specific capacity of 148 mAh/g, with actual mass production reaching around 120 mAh/g and a working voltage of approximately 4.0 V. In the 1990s, Japanese enterprises were the first to commercialize it, with Sanyo and Panasonic adopting it early on for power tools, household equipment, and other applications requiring high safety. In 2010, the Nissan Leaf adopted a modified LMO cathode system, becoming an early mass-produced pure EV model that entered the entry-level new energy vehicle market through its cobalt-free, high-safety, and low-cost attributes.

However, LMO has an inherent technical bottleneck—weak high-temperature cycling stability. When temperatures exceed 55℃, the material is prone to manganese dissolution and disproportionation reactions, causing rapid capacity fade. Dissolved manganese ions also damage the anode SEI film, persistently compromising battery life. The industry has optimized performance through modification methods such as element doping and surface coating, but these can only mitigate the decay problem rather than eliminate it entirely. As high-energy-density ternary cathode materials rapidly gained popularity, LMO gradually exited the mainstream passenger EV power battery sector and shifted toward low-speed lithium batteries and consumer applications where energy density requirements are moderate, and cost and safety take precedence.

2. 2026 Market Overview: Cost dictates pricing, structural divergence persists

Currently, LMO price trends are highly dependent on lithium carbonate market conditions, as lithium carbonate accounts for 60%–70% of its production costs. Raw material fluctuations directly drive corresponding adjustments in LMO prices. Overall industry operating rates remain stable, but internal divergence is pronounced: demand for high-end, long-cycle, high-voltage modified LMO products remains steady with tight supply, while ordinary low-end LMO suffers from severe homogenization and intense market competition. Small and medium-sized producers see squeezed profit margins, with most maintaining razor-thin profits or a break-even state.

The demand-side structure is clear and stable. Electric two-wheelers are the largest downstream application for LMO, accounting for over 60% of demand and forming the industry's baseline. Meanwhile, demand from power tools remains rigid and steady. The small and medium-sized ESS sector, leveraging LMO's advantages of high safety and low cost, has seen steadily expanding demand, becoming the main growth driver for the industry. Overall downstream demand shows no wild swings.

3. Market Outlook: Holding niche baseline, manganese-based materials continue to expand

In the short term, the LMO market will continue to follow lithium carbonate price fluctuations, operating in tandem with downstream restocking pace. High-end modified products are expected to sustain a structural premium due to capacity and technical barriers. In the medium term, the industry landscape will continue to optimize, with top-tier players dominating the market through technological, capacity, and cost advantages. Outdated low-end capacity will gradually be cleared, further increasing industry concentration.

Over the long term, traditional LMO will struggle to re-enter the high-end passenger EV power battery sector, but its rigid demand position remains firm across four niche segments: two-wheelers, low-speed vehicles, power tools, and small-to-medium-sized energy storage. Simultaneously, the manganese-related track continues to iterate, with the element manganese penetrating mainstream new energy markets through materials such as LMFP and ternary cathode materials. The overall importance of manganese-based materials in the lithium battery industry chain continues to rise.