[SMM Flash News] Sigma Lithium Reports Record Q2 Margins, Accelerates Capacity Expansion, Pressuring Global Supply

SMM August 17: Battery metals demand faces a more gradual growth path as automakers and suppliers signal that hybrids and range extenders will retain a significant role well beyond earlier full-BEV transition timelines, carrying direct implications for the pace at which spodumene concentrate must convert into lithium carbonate (LC) and lithium hydroxide (LH) downstream. Industry executives argue that decarbonization progress should be measured by total emissions reduction rather than BEV penetration alone, with one powertrain executive projecting that half of passenger vehicles could still carry some form of combustion or hybrid system by 2040. For the lithium supply chain, pack size is the key variable rather than unit count. Hybrids and range extenders still require lithium-ion battery packs, but at a fraction of the capacity used in full BEVs, meaning each hybrid sold absorbs meaningfully less LC or LH per vehicle than a comparable BEV. Lithium remains structurally supported across almost every electrification pathway, unlike nickel, cobalt, and manganese, which carry closer ties to high-nickel chemistries used in longer-range BEVs. A longer hybrid phase would slow the rate at which large-format BEV packs absorb lithium units, easing the pace at which LC/LH conversion capacity needs to be brought online even as upstream spodumene mining and beneficiation projects continue ramping toward planned output targets. The demand path carries logistics implications as well. A more gradual absorption curve for battery-grade lithium salts gives converters and refiners processing spodumene feedstock from Africa, Australia, and South America greater runway to bring hydroxide and carbonate capacity online without facing the acute bottleneck pressure a steep BEV-only ramp would create, allowing producers and converters to better sequence CIF delivery schedules against a less compressed conversion timeline. Policy remains a swing factor: the EU's current framework targets a 100% cut in new car and van tailpipe emissions from 2035, effectively phasing out combustion sales absent new exemptions, though suppliers are pushing for a more technology-neutral approach that credits hybrids and range extenders. Greater EU flexibility would further extend the timeline over which spodumene supply needs to convert into battery-grade LC/LH. SMM View: A longer mixed-powertrain era points to a more forgiving supply-demand balance across the spodumene-to-lithium-salt chain in the near term, giving upstream concentrate producers and downstream LC/LH converters additional room to align capacity growth with actual offtake absorption rather than racing an aggressive BEV-only demand curve. This may moderate the urgency behind some conversion capacity expansions currently underway across major producing and processing regions, while the structural case for spodumene supply growth remains intact given lithium's exposure across virtually every electrification pathway. SMM will continue tracking how powertrain mix assumptions filter through into spodumene pricing, conversion economics, and logistics planning across key export corridors.

On August 17th, DRC lithium hydroxide prices rose 3.89% to $20,065.63/mt in the 10-15 August 2026 pricing period, up $751.34/mt from $19,314.29/mt, making it the strongest performer among the country's key mineral exports. Tin concentrate (cassiterite) also gained, rising 1.67% to $17,531.44/mt from $17,243.55/mt. Other lithium products moved lower over the same period. Lithium carbonate fell 0.99% to $16,732.44/mt, while lithium sulphate declined by the same margin to $9,412/mt. Lithium concentrate posted the sharpest drop in the category, down 2.60% to $412/mt from $423/mt. Elsewhere, tantalum concentrate eased 0.69% to $28,171.57/mt and nickel slipped 0.88% to $15,055.74/mt. SMM View: The divergence between hydroxide and the rest of the DRC lithium complex points to differentiated demand pull along the value chain, with converted, battery-grade material commanding a premium even as upstream concentrate softens. Given mining's outsized weight in DRC export earnings, sustained hydroxide strength could bolster the case for domestic beneficiation, though the country's continued exposure to concentrate-price volatility underscores the risk of relying on raw ore exports. SMM will continue to track DRC's mineral pricing trajectory alongside broader African lithium supply chain developments.

[Focus on Supply Chain Collaboration: CATL Unveils Its 2035 Full Value Chain Carbon Neutrality Action Plan] On August 17, at the 2026 CATL Core Operations Carbon Neutrality Release Conference, Huang Bin, Director of CATL’s Procurement Center and Director of the Planning and Materials Control Department, stated that more than 80% of carbon emissions across the full life cycle of lithium batteries come from various stages of the supply chain. In the next phase, CATL’s goal is to achieve full value chain carbon neutrality—from mineral resources to finished batteries—by 2035. To achieve this goal, the key lies in coordinated efforts across the supply chain. From accurately accounting for carbon footprints through the entire process of targeted emissions reduction, CATL broke down the objectives in detail and formulated specific action plans.