Cell Design and Materials: Li-Ion

Western Companies Are Pursuing LMR as a Potential Alternative to the China-Led LFP Supply Chain Along with LNMO, lithium-manganese-rich LMR) cathode chemistry has existed for many years but has suffered from long-standing technical barriers. Among other benefits it offers a notionally lower cost compared to NMC and a higher energy density than LFP. Western auto- and battery manufacturers are pursuing LMR as a technology and associated supply chain that can potentially reduce reliance on China or even compete with it. Ford and GM are the latest companies to plan mass roll-out of LMR for their vehicle line-up, starting from 2028. The main risk is that LMR is a manganese-rich chemistry. China dominates the supply of high-purity manganese chemicals and produces the cheapest product. Some OEMs plan to draw on their future ex.China supply deals, but it will come at a higher cost. However, even when assuming a much higher price for manganese, LMR still comes out cheaper than NMC, as nickel is more expensive. On the other hand, supply of nickel sulphate and pCAM may remain dominated by China. LMR has the potential to take over the NMC market in the same way that medium-nickel high-voltage variants have done. It also has the potential to be the low-cost chemistry for North America. When including the US 45X $35 /kWh tax credit, LMR would reach LFP cost levels and would be a viable alternative, given the trade barriers on LFP.

Source: Content & analysis provided by CRU Group Distinguished Partner). For more information, visit https://www.crugroup.com.

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