[SMM Analysis] Manganese-based Battery Materials Market Analysis：Cost-driven Divergence with Demand Recovery Ahead

Published: Mar 31, 2026 19:33

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Recently, China's manganese-based battery materials market has been characterized by cost-driven divergence and gradual demand recovery. Battery-grade manganese sulfate and trimanganese tetroxide have strengthened on the back of rising raw material and freight costs; electrolytic manganese dioxide remains stable; and lithium manganate is steady amid volatile lithium carbonate prices, awaiting a demand rebound in April.

1. Battery-grade Manganese Sulfate

Strong cost support drives further price increases.

Supply: Operating rates stay high, but spot availability is tight with low inventories, some below safety levels.
Demand: Downstream rigid demand is stable, with most transactions under long-term contracts.
Outlook: Prices are expected to rise further as high sulfuric acid costs, tight supply and elevated freight persist, supported by steady domestic orders.

2. Battery-grade Trimanganese Tetroxide

Driven by costs and recovering demand, prices edge up.

Supply: Stable operation, orderly inventory control, no overstock pressure.
Demand: Downstream lithium manganate demand is improving, with early inventories nearly depleted and restocking interest rising.
Outlook: Supported by high-priced electrolytic manganese and manganese sulfate, prices will extend modest gains amid improving supply-demand balance.

3. Electrolytic Manganese Dioxide

Steady performance supported by mild rigid demand.

Supply: Normal operating rates, manageable overall inventories.
Demand: Post-holiday downstream demand has recovered moderately, supported by persistent rigid procurement.
Outlook: Supported by high raw material costs and environmental compliance expenses, prices will remain stable with limited fluctuations.

4. Lithium Manganate

Stable in wait-and-see mode, awaiting April demand recovery.

Supply: Industry operations back to normal, with leading manufacturers maintaining stable production.
Demand: Market caution persists due to volatile lithium carbonate prices; procurement is restrained.
Outlook: Short-term prices to stay stable. With expected mild rises in lithium carbonate and a demand recovery in April, prices may inch up.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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