New e-bike standards, cost concerns to bolster demand for lithium manganese oxide

SHANGHAI, Jun 4 (SMM) – Demand for lithium manganese oxide (LMO) is expected to receive a boost from new national standards for electric bicycles. This will drive producers from lead-acid batteries to lithium-ion batteries.

The electrification of transport and new e-bike standards are expected to bolster the sector’s demand for Li-ion batteries to 8.75GWh in 2019, with the penetration rate of Li-ion battery e-bikes rising from 10% to 15%. The demand is expected to grow to 15.2GWh by 2021.

Cost concerns, meanwhile, will lend an additional support to demand for LMO materials.

Mainstream Li-ion batteries used in e-bikes are ternary materials batteries and composite materials batteries, which consist of ternary materials and LMO. Adding LMO to ternary materials for cathode materials in batteries can lower costs while ensuring energy density.

SMM data showed that ternary materials account for 65% of cathode materials used in Li-ion batteries for e-bikes, while LMO materials take up 35%.

China’s e-bike sector’s demand for ternary materials is estimated to reach 11,700 mt in 2019, while demand for LMO materials is likely to amount to 9,500 mt.

In anticipation of further development of Li-ion battery technology and exapansion of the e-bike market, the sector’s demand for LMO materials is expected to expand to 28,000 mt by 2021.