Chinese Capitals to Join in Eastern Iron’s Lithium Projects

At the beginning of this week, prices across the industry chain remained weak. After refined cobalt futures fell, traders raised their spot-futures price spread quotes, but downstream buyers continued to purchase only on a need-to basis. In the intermediate product market, there were almost no inquiries or transactions, with holders indicating prices above $17/lb while some buyers would only accept below $13/lb, widening the divergence. Cobalt sulphate, cobalt chloride, and Co3O4 prices continued to pull back, with downstream procurement subdued and lower raw material costs weakening price support. Cobalt powder enterprises also lowered their quotes, and high-priced inventory delayed restocking by cemented carbide enterprises. Ternary cathode precursors saw production schedules trend lower due to weaker nickel and cobalt salt prices and insufficient demand for some orders. Ternary cathode material prices fell along with raw materials, and cathode plants mainly consumed existing inventory. LCO demand showed no seasonal boost, and prices remained at risk of further weakness. Overall, pre-holiday stockpiling was limited, and the market is waiting for inventory digestion and demand improvement.

Sanxia New Material (600293.SH) announced that the company plans to acquire no less than 53.14% of the shares of Zhuhai Saiwei Electronic Materials Co., Ltd. through share issuance and cash payment, which is expected to constitute a major asset restructuring. Trading in the company's shares will be suspended from September 29, 2026, with the suspension expected to last no more than 10 trading days. The target company's main business: primarily engaged in the R&D and production of electronic specialty materials such as lithium-ion battery electrolyte and new-type membrane materials, and holds a hazardous chemicals production license.

Gotion High-tech (002074.SZ) announced that the company and its wholly-owned subsidiaries plan to sign an Investment Agreement with Volkswagen AG and its wholly-owned subsidiaries to establish three joint ventures in Valencia, Spain; Surany, Slovakia; and Kenitra, Morocco. The total project investment is expected to be about 3.222 billion euros, of which Gotion High-tech's total investment is about 1.598 billion euros. The Valencia JV will build a lithium battery project with annual capacity of 29.1 Gwh, with total investment of about 2.262 billion euros and Gotion High-tech holding a 49% stake. The Surany JV will build a lithium battery project with annual capacity of 8.4 Gwh, with total investment of about 480 million euros and Gotion High-tech holding a 51% controlling stake. The Morocco JV will build a project with annual capacity of 100,000 mt of LFP cathode materials, with total investment of about 480 million euros and Gotion High-tech holding a 51% controlling stake. This investment constitutes a related-party transaction and is still subject to shareholder meeting approval and government approvals at home and abroad.