14th Five-Year Plan on Green Industry Development and Its Impact on Lithium Battery Recycling

SMM battery-grade spot lithium carbonate prices drifted lower today compared to the previous working day. The lithium carbonate 2701 contract opened lower at 154,400 yuan/mt, then moved lower amid fluctuations. During the morning session, it fluctuated between 151,000 and 153,000 yuan/mt, rebounding at times but failing to break above the average price line. Near midday, bears continued to pressure the market, causing prices to drift lower. In the afternoon, it accelerated down to 149,100 yuan/mt, hitting a new intraday low, before rebounding slightly. In the late session, it moved sideways in a narrow range of 150,500–150,700 yuan/mt, eventually closing down 3.01% at 150,700 yuan/mt, with open interest increasing by 4,347 lots. In the spot market, the drifting lower lithium carbonate prices significantly bolstered downstream willingness to restock at lower prices. Some downstream enterprises with plans for just-in-time procurement this week, who had remained on the sidelines in previous sessions due to relatively high-level prices, concentrated their buying volume release today during the price correction window. Upstream, the pace of spot order shipments from lithium chemical plants remained stable, and plants undergoing maintenance continued to prioritize fulfilling long-term contract orders to secure supply. Overall, the market inquiry atmosphere was heated, and actual trading activity was relatively high.

On August 18, Weilan Lithium Core released its semi-annual performance report for 2026. During the reporting period, the company's core business continued to maintain a favorable operating condition, achieving total operating revenue of 4.858 billion yuan, a year-on-year increase of 30.35%; net profit was 555 million yuan, a year-on-year increase of 50.07%. Regarding the performance growth, Weilan Lithium Core attributed it to the competitiveness of its products and the increase in downstream demand, with its lithium battery business growing rapidly year-on-year. In the first half of 2026, Weilan Lithium Core's lithium battery business experienced rapid growth, with the lithium battery segment achieving operating revenue of 2.527 billion yuan, a year-on-year increase of 58.43%; the gross profit margin was 22.84%.

On August 18, LG Energy Solution announced that its new battery factory in Lansing, Michigan, USA, has officially started production. The project represents a total investment of over $2 billion and will produce both energy storage and automotive power batteries, further expanding the company's local battery supply capabilities in North America. The factory spans 226 acres and, at full production capacity, will have an annual battery output exceeding 35 GWh. The products are divided into two main tracks: one track produces lithium iron phosphate (LFP) cells for grid-scale and commercial & industrial energy storage applications. These cells will be integrated into complete energy storage systems by LG Energy Solution's US energy storage division, Vertech, with Detroit-based energy company DTE Energy becoming a downstream customer for the factory's energy storage batteries. The other track produces high-energy-density nickel-manganese-cobalt (NMC) batteries exclusively for Toyota, which will be used in the 2027 Toyota Highlander all-electric model, supporting Toyota's electric vehicle supply chain development in the United States.