The upstream segment of the LMO industry chain primarily involves the extraction and processing of manganese ore resources, lithium sources, and other chemical raw materials. As a core raw material for LMO production, manganese ore resources are widely distributed globally, with major concentrations in South Africa, Australia, and China. Lithium resources are derived from spodumene and salt lake lithium extraction, with key production areas including Chile, Australia, and China. The production and supply of lithium carbonate are also critical in the upstream segment, as its price fluctuations directly affect the production cost of LMO.

The midstream segment focuses on the production and manufacturing of LMO, with key processes including raw material mixing, calcination, crushing, and surface treatment. Production methods are diverse, including solid-state reaction, sol-gel, co-precipitation, hydrothermal, and spray-drying methods. The solid-state reaction method is widely used due to its maturity and low cost, while the sol-gel method enables the preparation of highly uniform nanostructured LMO. The co-precipitation method achieves uniform particle products through precise control of the precipitation process, while the hydrothermal method synthesizes high-performance materials under high temperature and pressure. The spray-drying method is favoured for its suitability for large-scale continuous production.

LMO has a wide range of downstream applications, primarily in the production of lithium-ion batteries, covering electric two-wheelers, power tools, 3C digital products, and A00-class NEVs. Key downstream players include lithium battery producers and end-use product manufacturers. In recent years, with the rapid growth of the NEV and ESS markets, the demand for LMO has been steadily increasing. However, in certain high-end markets, such as high-performance EVs, LMO faces competition from other cathode materials, and its market share is therefore primarily concentrated in the low and mid-end markets.

The main risks in the LMO industry chain include fluctuations in upstream raw material prices, changes in the policy environment, and uncertainties in downstream market demand. In particular, the price volatility of manganese ore and lithium resources is one of the key factors affecting the production cost of LMO.