SMM Review of Cobalt and Lithium Markets during CNY Holiday and Post-Holiday Forecast

According to Canada Nickel on September 14, the company has selected Komatsu and its Canadian dealer SMS Equipment to provide loading, hauling and supporting mining equipment for the Crawford nickel-cobalt sulphide project. Canada Nickel expects to purchase more than 300 pieces of equipment over the project’s roughly 40-year mine life, with a total current value of approximately C$1.5 billion. The parties aim to finalize the agreement by the first quarter of 2027. Crawford is 100%-owned by Canada Nickel and is the company’s flagship nickel-cobalt sulphide project. The selection of key equipment suppliers marks another step toward construction readiness. Komatsu’s proposed solutions also include autonomous haulage, fleet management and electrification technologies. As equipment procurement and engineering preparations advance, the Crawford project is moving closer to commercial development and could strengthen future North American supply of domestic nickel and cobalt resources.

Public records show Jiangxi Ganfeng Lithium Battery Co. completed a registration change on Sept 15, with registered capital rising about 10% from RMB 3.18bn to RMB 3.51bn. Founded in 2011, the company develops, produces and sells lithium-ion power batteries, fuel cells and energy storage batteries. The increase is expected to support its power and energy storage battery expansion.

The industry chain remained in the doldrums overall this week, with some products stabilizing briefly, but demand-side improvement was limited. Electrolysis product prices stopped falling and rebounded, driven mainly by a phased increase in purchasing, though sustainability remains to be seen. The intermediate product market stayed in a stalemate, with upstream price-holding and low-price transactions intensifying the standoff; if low-priced supply persists, the price center still faces downside risk. Cost support for salt products continued to weaken, as low-cost recycled materials and low-price selling by some enterprises intensified market competition, while downstream purchase willingness remained cautious, leaving prices clearly under pressure. Co3O4 and cobalt chloride were broadly stable, but with both supply and demand weak and inventory digestion slow, there was little upward momentum in the short term. Cobalt powder quotations continued to edge lower, dragged down by weak demand from the cemented carbide sector. Ternary cathode precursors and ternary cathode materials continued to weaken under the impact of falling nickel and lithium raw material prices and reduced end-user orders, with production schedules also trending downward. LCO's traditional peak season performance fell short of expectations, with weak end-user stockpiling; falling costs and insufficient demand created dual pressure, and the market is expected to consolidate on a weak note in the short term.