Construction of 50,000 mt NCA cathode material project began in Qinghai

Between January 2 and February 11, 2025, LME and SHFE copper prices recorded two-week gains of approximately 6.31% and 5.28%, respectively. However, the standout performer was the COMEX copper futures contract, which surged by an impressive 15.26%, significantly outperforming both the SHFE main contract and LME 3M copper. For the first time since May 2024, the price spread between COMEX and LME 3M contracts has widened again, reaching nearly $950/ton intraday on February 11, 2025. Unlike the short-lived short squeeze in 2024, this time, the spread window has remained open for a longer period and with greater volatility.

On January 2, 2025, China’s Ministry of Commerce issued a file titled “Notice on Adjustments to the Public Consultation for the Catalogue of Technologies Prohibited or Restricted from Exporting from China.” The notice mentions the potential implementation of export restrictions on battery and lithium processing related technologies. The deadline for feedback submission is February 1, 2025.

The management team confirms that the company has been in negotiations with potential long-term off-takers.

[SMM Analysis: LMFP Market Stable in September, Average Price and Production Down MoM] In September, LMFP prices fluctuated within a stable range due to limited current market demand, putting pressure on prices. On the production side, LMFP production slightly decreased in September.

China’s cobalt sulphate output stood at 3,615 mt (Co content) in February, down 16.6% month on month, but up 99.6% year on year. Some cobalt salts plants were closed for 7-10 days in February for the Chinese New Year (CNY) holiday, which led to the decline in cobalt sulphate output.

During November 17-20, SMM new energy business director Wang Tian and marketing consultant Yu Lei led SMM staff and members of the delegation to visit lithium battery raw material producers in Hunan in order to seek more in-depth cooperation opportunities. Their first stop was Hunan Kingfuli New Energy Co., Ltd.

China’s tricobalt tetraoxide output continued to increase in August, but may gradually decline in September due to the low season. Downstream demand is likely to fall sharply in Q4.

The project has an overall annualised capacity of 50,000 mt

An annualised capacity of 3,000 mt LFP and 2,000 mt NCM523 ternary materials is currently under operation

The agreement was signed during the first-ever China International Import Expo on Tuesday Nov 6