[Weifang Chuanghai Lithium Battery Recycling Project: 8,000 t/y Li₂CO₃]

On July 28, the Yantai Municipal Ecology and Environment Bureau formally approved the Environmental Impact Assessment for Wanhua Chemical (Penglai) Co., Ltd.'s 240,000-tonne-per-year iron phosphate project. The project, located on reserved land in Phase II of the Wanhua Penglai Industrial Park, involves a total investment of RMB 1.5 billion. It will build a 240,000 t/y iron phosphate production unit along with supporting auxiliary facilities and environmental protection systems. The batching section operates on an intermittent basis, with 2,000 batches per year (one batch every four hours), each producing 120 tonnes of iron phosphate. The project will help alleviate raw material supply pressures driven by Wanhua’s rapidly expanding lithium iron phosphate (LFP) capacity in Shandong—where the company is set to add 820,000 tonnes of LFP capacity in 2026 alone, making Yantai a key LFP production hub.

In Q2 2026, Mineral Resources reported lithium concentrate production of 177,000 tonnes on an equity basis (142,000 tonnes in SC6 equivalent), with sales of 195,000 tonnes (158,000 tonnes SC6 equivalent). The average realised price was US$2,425/t (CIF, SC6 basis), and unit revenue was A$2,785/t. For Wodgina (50% equity), production was 94,000 tonnes (83,000 tonnes SC6), sales 100,000 tonnes (91,000 tonnes SC6), average price US$2,450/t, and SC6 FOB cost A$714/t (down 11% QoQ). All three processing lines are expected to be fully operational in Q3, with Stage 4 pre‑stripping starting concurrently. At Mt Marion (production at 50%, sales at 51%), output was 82,000 tonnes (59,000 tonnes SC6), sales 94,000 tonnes (67,000 tonnes SC6), average price US$2,392/t, and cost A$878/t. The company plans to invest A$490 million in a flotation plant and underground mine development; Macmahon has been awarded the mining contract, and underground portal preparation at the North and Central pits commenced in July. Bald Hill resumed operations in May, mining 15,000 tonnes of ore and producing about 1,000 tonnes of concentrate in Q2, with first shipments completed in July; it is expected to reach full capacity of 140,000 tonnes SC6 per annum by Q4, while studying expansion options.

This week, the industry chain exhibited a diverging pattern, with upstream raw material and cobalt salt prices weakening while midstream and downstream material prices remained relatively stable. Trading in refined cobalt, intermediate products, cobalt sulphate, cobalt chloride, Co3O4, and cobalt powder was generally sluggish. Downstream buyers mostly maintained just-in-time procurement, as off-season demand was insufficient, and inventory pressure along with low-priced supply continued to weigh on market prices. Although some miners and smelters, supported by high-cost inventory, still intended to hold prices firm, traders and recycling companies became more active in selling, and the decline in the cost of refined cobalt reverse dissolution further strengthened market expectations of pushing for lower prices. In the short term, related product prices still face downward pressure. Ternary cathode precursor, ternary cathode material, and LCO prices remained stable overall. Leading ternary cathode precursor companies performed well in export orders, and domestic production schedules recovered somewhat, but small and medium-sized enterprises were still affected by the off-season. Demand for ternary cathode materials from the EV sector stayed at a high level; some battery cell enterprises stockpiled in advance, and August orders are expected to be stable with slight growth. Consumer-side demand remained mediocre. Affected by sluggish end-use demand and substitution by ternary cathode materials, LCO production and sales remained low, further narrowing enterprises' profit margins. Subsequent market recovery will still depend on the restocking pace in mid-to-late August and the release of demand during the September-October peak season.