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 outstanding C-rate performance while featuring simple processing and high safety. Its most critical advantage lies in the abundant manganese reserves and extremely low cost, far superior to the precious metal refined cobalt, making it a key material for low-cost lithium battery development. After four decades of industry evolution, although LMO has been replaced by ternary cathode materials in the high-end passenger car power battery segment, it has long maintained a firm foothold in niche markets such as electric two-wheelers, power tools, and low-speed equipment thanks to its cost-effectiveness. The industry overall presents a structural landscape where high-end modified products are in tight supply while low-end products face fierce involution.

I. Technology Origins: Clear Performance Advantages, but High-Temperature Weakness Hard to Cure

LMO has a theoretical specific capacity of 148mAh/g, with actual mass production reaching around 120mAh/g and a working voltage of approximately 4V. In the 1990s, Japanese enterprises were the first to achieve commercialization, with Sanyo and Panasonic widely applying it in power tools, household equipment, and other scenarios with high safety requirements. In 2010, the Nissan Leaf car model adopted a modified LMO cathode system, becoming an early mass-produced pure EV that penetrated the entry-level new energy vehicle market by leveraging its cobalt-free, high-safety, and low-cost characteristics.

However, LMO has inherent technical bottlenecks, with relatively weak high-temperature cycling stability. When temperatures rise above 55°C, the material is prone to manganese dissolution and disproportionation reactions, causing rapid capacity degradation. The dissolved manganese ions also damage the anode SEI film, continuously affecting battery lifespan. The industry has optimized performance through modification methods such as elemental doping and surface coating, but these can only mitigate the degradation issue without fully curing it. As high-energy-density ternary cathode materials rapidly popularized, LMO gradually exited the mainstream passenger car power battery arena, shifting toward low-speed lithium battery and consumer sectors where energy density requirements are moderate and cost and safety are prioritized.

II. 2026 Market Status: Cost-Driven Pricing, Structural Divergence Continues

Currently, LMO price trends are highly dependent on lithium carbonate market conditions, as lithium carbonate accounts for 60%–70% of its production cost, with raw material fluctuations directly driving LMO price adjustments in tandem. Overall industry utilization remains stable, but internal divergence is evident: high-end long-cycle, high-voltage modified LMO products enjoy stable demand and tight supply, while ordinary low-end LMO suffers from severe homogenization and intense market competition, with small and medium-sized manufacturers seeing their profit margins squeezed, most maintaining marginal profits or break-even status.

Demand side, the 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 fundamental base. Meanwhile, power tool demand remains rigid and robust. The small and medium-sized ESS sector, leveraging LMO's high safety and low cost advantages, is seeing steady demand expansion, becoming the industry's primary incremental growth direction. Overall downstream demand shows no wild swings.

III. Market Outlook: Holding Firm in Niche Segments, Manganese-Based Materials Continue to Expand

In the short term, LMO market conditions are expected to continue following lithium carbonate price fluctuations. Combined with downstream as-needed restocking pace, high-end modified products are expected to sustain structural premiums due to capacity and technology barriers. In the medium term, the industry landscape is expected to continue optimizing, with top-tier players dominating the market through technology, capacity, and cost advantages, while low-end outdated capacity is expected to gradually exit the market, further increasing industry concentration.

From a long-term perspective, traditional LMO is unlikely to pivot toward the high-end passenger car power battery arena, but its rigid demand position remains solid across four niche segments: two-wheelers, low-speed vehicles, power tools, and small-to-medium ESS. Meanwhile, the manganese-based arena continues to evolve, with manganese penetrating mainstream new energy markets through categories such as LMFP and ternary cathode materials. The overall importance of manganese-based materials in the lithium battery industry chain continues to rise.