CATL has reportedly announced plans to mass produce its Qilin LMFP batteries by 2023.

Recently, CATL announced its second-generation cell-to-pack (CTP), manganese-containing LFP battery – Qilin 3.0.  CATL has improved the LFP chemistry by adding manganese to the formula, increasing the voltage from 3.2 to 4.1 volts, thus boosting the battery’s energy density.  The CTP design of Qilin is said to reduce the cost of materials while simultaneously increasing volumetric density (255Wh/kg), thus increasing efficiency (10-80% charging time of 10 minutes) and performance.  LMFP cathodes have been investigated in the past; however, were found to have a limited life cycle and high internal resistance. CATL addressed this problem by combining lithium ternary materials with LMFP materials in a prismatic cell. Vehicles with the Qilin battery will allow a range of up to 600 km and it is reportedly 13% more powerful than Tesla’s new 4680 LFP battery.

Manganese is a key ingredient in several lithium-ion battery cathode formulations and thus a vital ingredient in key technologies that will meet the safety, durability, and performance requirements of the EV industry.  Over the past year, interest in manganese as a cathode technology has intensified, with Tesla and Volkswagen both confirming that high-manganese, high-nickel cathodes are central to their future plans.  While sizable volumes of battery-grade manganese are already consumed in LMO, NCM, and NCMA cathodes, more novel chemistries such as LMFP, LNMO, NMx and other nickel-rich technologies present considerable upside. 

CATL is China’s largest battery producer, the primary producer of LFP batteries and a major supplier to Tesla, Volkswagen, BMW and Nio.  As such, the news that manganese may soon be a central feature of one of its key chemistries has considerable implications for future manganese demand.   Project Blue forecasts double-digit demand growth for manganese in its base case.  While existing and planned capacity should be sufficient to meet demand over the medium term, the vast majority of the capacity is in China.  With downstream lithium-ion players and automotive OEMs looking to build more sustainable, local supply chains, there are considerable opportunities for ex-China producers with strong economics and ESG credentials to enter the market.