Citic Dameng raises lithium manganese oxide capacity

Chinese state-owned manganese producer Citic Dameng has launched a new production line for lithium manganese oxide in Chongzuo in southwest China's Guangxi province.

The production line, with 3,000 t/yr of output capacity, is the first phase of CITIC's output expansion plan. The company will begin the construction of the second phase of 7,000 t/yr in the near future.

The new line has raised the company's total capacity of lithium manganese oxide to 8,000 t/yr. The company's 2017 output of lithium manganese oxide increased by 165pc from a year earlier to 1,300t.

In response to growing demand from the lithium-ion battery manufacturing industry, Citic Dameng has been increasing its output capacity for lithium-ion battery cathode materials in the past few years. It also has 2,000 t/yr of capacity for nickel-cobalt-manganese lithium ternary material and 1,000 t/yr for lithium cobalt oxide.

China is on target to increase its production of new energy vehicles (NEVs), including pure electric and plug-in electric hybrid, by 25pc year on year to 1mn units in 2018. Beijing is aiming to double the production by 2020 to save energy and curb pollution.

China's NEV output rose by 111.5pc year on year to 412,000 units in the first half of this year, according to data released by China's automobile association CAAM.

Rapid growth in the country's NEV output has raised demand for a number of battery metals, including cobalt, lithium, nickel and manganese. China's production capacity for lithium manganese oxide is expected to exceed 70,000 t/yr by the end of this year compared with around 50,000 t/yr in 2017.