[SMM Analysis] LCO: Prices Running Steadily, Focus on Changes in Restocking Pace

Recently, Shanxi Xiang'an Energy Technology Co., Ltd. published the environmental impact assessment draft for public comment for its annual production of 30,000 mt of sodium-ion battery materials project. The project is located in the Fuyang Industrial Park, Xiangyuan Economic and Technological Development Zone, Changzhi City, Shanxi Province. The main part of the project and associated utilities include the construction of two production lines for sodium-ion battery cathode materials and one production line for anode materials, along with supporting pure water preparation, air compression systems, nitrogen generation systems, dehumidification systems, and cooling water circulation systems. The processes adopted include: pretreatment (mixing + sand milling + iron removal + spray drying), sagger loading, vibration leveling, grid insertion + sintering, and final treatment (jet milling + batch mixing + sieving + packaging). Once operational, the project will produce 25,000 mt of sodium-ion battery cathode materials and 5,000 mt of anode materials annually. The total investment of the project is 534 million yuan, with an environmental protection investment of 3.64 million yuan, accounting for 0.68%.

Equipment companies such as Liyuanheng, Lead Intelligent, and ST Funeng disclosed solid-state battery equipment progress in quick succession: Liyuanheng’s all-solid-state full-line project completed phased acceptance, and its warm isostatic pressing equipment reached mass-production delivery standards; Lead Intelligent continued to win orders from leading customers in Q3 and delivered multiple production lines in parallel; ST Funeng’s subsidiary Chaoye Precision achieved small-batch delivery.

Today, SMM battery-grade lithium carbonate spot prices continued to drift lower compared with the previous trading day. The lithium carbonate 2701 contract opened lower at 129,300 yuan/mt today. After the open, bears kept up the pressure, and prices drifted lower along the average price line, hitting an intraday low of 124,000 yuan/mt in the morning session. Around midday, bargain hunting emerged at lower levels, and prices rebounded, briefly rising to around 127,000 yuan/mt in the afternoon before meeting resistance and pulling back again. Near the close, prices moved sideways around 125,800 yuan/mt, with open interest down 1,204 lots. In the spot market, downstream buyers continued to stockpile at lower prices ahead of the September and October holidays. A small number of material producers remained cautious, with spot order purchase intentions below 125,000 yuan/mt. Upstream lithium chemical plants continued to hold spot order prices firm and held back from selling, though some high-priced offers softened slightly. Overall, market inquiries and actual transactions remained active.