[Weekly Report on Cathode Materials] CATL/CORNEX New Energy Places Orders for LFP! Former Leader of ST Power Reappointed

[Highlights] Former ST Pawa Helmsman Reappointed, Targeting Profitability Turnaround in 2025

On May 22, ST Pawa (688184) announced that Chairman and General Manager Zhang Bao resigned from his positions as chairman, general manager, and legal representative due to personal health reasons. He will continue serving as a director, chair of the Strategy Committee, and member of the Remuneration and Appraisal Committee. His resignation will not affect the normal operation of the board or the company's daily management.

On the same day, ST Pawa announced the appointment of Bao Liang Wang as general manager and legal representative, and Wei Feng Pu as deputy general manager and board secretary. Their terms will last until the end of the third board's tenure. Notably, Wang previously served as chairman from September 2016 to October 2022, bringing extensive corporate management experience.

ST Pawa specializes in R&D, production, and sales of new energy battery materials, focusing on cathode materials for lithium-ion and sodium-ion batteries, while actively exploring semi/solid-state battery technologies. (Source: Battery 100 - Battery Network)

[Company] Hainan Mining's 1.056 Billion Yuan, 20,000 mt Battery-Grade Lithium Hydroxide Project Commences Operation

On the evening of May 25, Hainan Mining (601969) announced the completion of its battery-grade lithium hydroxide project. Approved at a September 2021 interim shareholders' meeting with an investment cap of 1.056 billion yuan, the 20,000 mt project is located in Yangpu New Materials Park, Danzhou, Hainan. Operated by subsidiary Hainan Star Sea New Materials, construction began at the end of 2022. Metallurgical trial production succeeded in February 2025, followed by full-process integration between metallurgical and hydrometallurgical sections. Initial products passed internal lab tests, meeting design specifications. (Source: Hairong Network)

[Project] Annual 100,000 mt Processing Capacity: Lianyungang Lithium Battery Vein Industrial Park Projects Signed

According to "Ganyu Release," three companies—Lianyungang Houze Renewable Resources, Atom Lithium Technology (Lianyungang), and Aluminum Cloud Warehouse Renewable Resources (Lianyungang)—signed contracts on May 21 for the lithium battery vein industrial park project in Chengxi Town, Ganyu District, Jiangsu's Lianyungang.

According to reports, the centralized signing projects involve a full life cycle recycling system ranging from lithium battery dismantling equipment manufacturing to scrap lithium battery dismantling and second-life applications. With a total investment of 480 million yuan, the projects are expected to form an annual processing capacity of 100,000 mt of end-of-life batteries upon completion, achieving efficient recycling of resources such as lithium, copper, and aluminum. This will effectively promote the agglomeration development of the lithium battery recycling industry in Chengxi Town, forming a complete industry chain and enhancing the overall strength of the sector. (Source: Battery 100 - Battery Network)

[Update] 3.2 Billion Yuan! 300,000 mt! BSK Battery Recycling Base Officially Launched in Huaian, Jiangsu

According to BSK New Energy (Shanghai) Co., Ltd. (BSK), the company recently signed a 3.2 billion yuan "Zero-Carbon Plant Project for High-Value Utilization of Power Batteries" at the Fifth Huaihe Chinese Entrepreneurs Conference. The project, located in Huaian Industrial Park, Jiangsu, marks a critical step in BSK's nationwide industrial layout.

The project covers a total area of 380 mu and is expected to achieve an annual processing capacity of 300,000 mt of end-of-life power batteries, producing 20,000 mt of battery-grade lithium carbonate and 100,000 mt of recycled battery-grade iron phosphate upon completion. Construction is scheduled to commence in June 2025, with production set to begin in May 2026.

BSK specializes in the comprehensive recycling of end-of-life LFP batteries and the production of iron phosphate precursor materials, with a long-term commitment to the circular utilization of lithium battery materials and the green sustainable development of the new energy industry. Notably, in addition to the Huaian base in Jiangsu, the Henan base represents Step-1 in BSK's global expansion. Once operational, it will have an annual processing capacity of 300,000 mt of scrap power batteries and produce 20,000 mt of battery-grade lithium carbonate. (Source: Battery 100 - Battery Network)

[Order] Approximately 1.3231 Million mt! CATL Issues Major LFP Procurement Contract!

Recently, Wanrun New Energy (688275) announced that it signed a business cooperation agreement with CATL. Starting from May 2025, the company will supply qualified LFP products to CATL according to the agreed procurement volume, with an estimated total supply of approximately 1.3231 million mt from May 2025 to 2030.

The announcement also mentioned that, given the comprehensive advantages of Wanrun New Energy's products, CATL commits to purchasing no less than 80% of the agreed monthly volume during 2025–2030. The annual monthly delivery plan will be specified in a supplementary agreement signed before October 1 of the preceding year. Both parties will establish a long-term cooperation mechanism to jointly advance the iteration and mass production of high-compaction-density LFP products and explore the new energy market.

Vanrun New Energy stated that this agreement is a major contract for the company's daily operations and is expected to have a positive impact on the company's future operating performance. (Source: China Battery Industry Association - Battery.com.cn)

[Orders] 5 billion yuan! CORNEX New Energy signs a five-year procurement contract

According to CORNEX New Energy, on May 22, CORNEX New Energy and Changzhou Liyuan New Energy Technology Co., Ltd. signed a strategic cooperation agreement at CORNEX New Energy's global headquarters.

Under the agreement, CORNEX New Energy will purchase approximately 150,000 mt of LFP cathode materials from Changzhou Liyuan over the next five years, with a total cooperation value of approximately 5 billion yuan. Meanwhile, the two parties will establish a long-term cooperation mechanism to jointly promote the iteration and mass production introduction of diversified, high-quality, and high-compaction-density LFP cathode material products, and jointly explore the new energy market.

CORNEX New Energy stated that the two parties will work together to use material innovation as a fulcrum to balance the triangle of lithium battery energy density, safety, and cost-effectiveness, enabling high-performance new energy technologies to drive the leap from industrial technology iteration to value reconstruction. (Source: China Battery Industry Association - Battery.com.cn)

[Industry] Domestic lithium carbonate prices continue to fall! China imported 623,000 mt of lithium concentrates in April

On May 23, the Lithium Branch of China Nonferrous Metals Industry Association released the operating conditions of the lithium industry in April 2025. The data showed that in April, domestic lithium carbonate prices continued to fall, with battery-grade lithium carbonate prices dropping from 73,800 yuan/mt at the beginning of the month to 67,300 yuan/mt at the end of the month, a decrease of 8.88%; industrial-grade lithium carbonate prices fell from 72,100 yuan/mt at the beginning of the month to 65,700 yuan/mt at the end of the month, a decrease of 8.81%; the closing price of the most-traded contract fell from 74,240 yuan/mt at the beginning of the month to 65,680 yuan/mt at the end of the month, a decrease of 11.53%, and the spread between futures and spot prices at the month-end was 20 yuan/mt.

In April, China's lithium carbonate production dropped back slightly. According to statistics from the Lithium Branch of China Nonferrous Metals Industry Association, in April 2025, the national lithium carbonate production was approximately 64,000 mt, down 2.1% MoM; the national lithium hydroxide production was approximately 37,000 mt, down 0.3% MoM; the national lithium chloride production was approximately 1,717 mt; and the national lithium metal production was approximately 132 mt.

In terms of imports and exports, in April, China's imports of spodumene concentrates increased MoM, and imports of lithium carbonate increased MoM, with spodumene imports mainly coming from Australia, Zimbabwe, and Nigeria.

In terms of imports, China imported 623,000 mt of lithium concentrates in April, up 16.5% MoM. The top three countries in terms of import volume were Australia, Zimbabwe, and Nigeria. (Source: China Battery Enterprise Alliance - CBEA)

[Think Tank Highlights] LFP Prices Fall, Processing Fees Unlikely to Rise in Q2

Recently, SMM reported that the downward trend in LFP prices slowed last week, with an overall decline of approximately 365 yuan/mt. This was mainly due to the continuous drop in lithium carbonate prices, which fell by around 1,450 yuan/mt in total last week.

On the market side, material producers were generally active in production last week, with output from leading material producers beginning to recover. However, production at some second-tier material producers declined, primarily due to adjustments in the downstream battery cell supply chain structure and a slight decrease in downstream power battery orders. On the demand side, ESS demand continued to improve. On one hand, the US reduced tariffs on Chinese goods, prompting downstream battery cell manufacturers to rush exports, resulting in a slight increase in orders. In terms of price settlement, the average price of iron phosphate showed a slight upward trend in April. Some LFP producers had hoped for an increase in processing fees for Q2, but no substantive results were achieved after negotiations and discussions with downstream battery cell manufacturers.

Currently, the price of iron phosphate raw materials has started to decline, so a certain price reduction is expected for iron phosphate in May. Additionally, with some battery cell manufacturers set to restart tenders in June, the probability of a price increase before then is low. Considering these two points, SMM expects that processing fees will be unlikely to rise in Q2.