As a cathode material for lithium batteries, the lithium cobalt oxide industry has broad development prospects.

The chemical formula of lithium cobalt oxide is LiCoO₂, which is an inorganic compound with a gray-black powder appearance. Lithium cobalt oxide is usually prepared using a liquid phase synthesis process. The mixed solution is heated, calcined, milled, sieved and other processes to finally produce lithium cobalt oxide. Lithium cobalt oxide is mainly used as a cathode material for lithium-ion batteries and has the advantages of high voltage, high energy density, and long service life.

The upstream of the lithium cobalt oxide industry chain supplies raw materials, including cobalt, lithium and other elements. Driven by the rapid development of the new energy industry, my country’s lithium production has grown rapidly, cobalt production has declined slightly, and the supply of raw materials has been stable. According to the operation status of the nickel, cobalt and lithium industry released by the Ministry of Industry and Information Technology in the first half of 2022, my country’s refined cobalt production reached 58,000 tons in the first half of 2022, a year-on-year decrease of 6.9%, and lithium carbonate production reached 168,000 tons, a year-on-year increase of 42.4%. Against this background, my country’s lithium cobalt oxide shipments have increased significantly. In 2021, my country’s lithium cobalt oxide shipments will reach 115,000 tons, a year-on-year increase of 32.7%.

Lithium cobalt oxide, lithium manganate, lithium iron phosphate and ternary materials are common lithium battery cathode materials. At present, lithium iron phosphate and ternary materials are the most widely used in power batteries, and the demand for the above two cathode materials in the power battery market accounts for as high as 80.0%. Lithium cobalt oxide is the earliest used battery cathode material. However, due to factors such as rising raw material prices, the production cost of lithium cobalt oxide is high and its market share in the power battery market is low.

Lithium cobalt oxide is widely used in computers, smartphones, consumer electronics and other fields due to its advantages of strong stability, simple preparation, and high specific capacity. In 2021, my country’s smartphone sales reached 320 million units, a year-on-year increase of 4.1%. At the same time, the outbreak of the new crown epidemic has promoted the rapid development of online office and online education industries. Tablet computers, as electronic products for office and study, are favored by many consumers. In 2021, my country’s tablet shipments reached 29.36 million units, a year-on-year increase of 23.6%. The increasingly strong application demand has brought broad development space for the lithium cobalt oxide industry.

According to the “2022-2027 Lithium Cobalt Oxide Industry In-depth Market Research and Investment Strategy Suggestions Report released by the Industrial Research Center, my country The lithium cobalt oxide industry is highly concentrated, with Shanshan Energy, Tianjin Bamo and Xiamen Tungsten New Energy as leading companies occupying nearly 70.0% of the market share. Xiamen Tungsten New Energy is mainly engaged in lithium-ion battery cathode materials such as lithium cobalt oxide and ternary materials. In 2021, Xiamen Tungsten New Energy’s lithium cobalt oxide output accounted for nearly 50% of the country’s total output, ranking first in the industry.

Industry analysts said that my country’s lithium cobalt oxide shipments have continued to increase thanks to sufficient supply of raw materials. As one of the common cathode materials for lithium batteries, lithium cobalt oxide has a low market share in the power battery market due to high production costs. At present, lithium cobalt oxide is mainly used in electronic products. As market demand continues to grow, my country’s lithium cobalt oxide industry will usher in broad market prospects. In terms of market competition, my country’s leading companies occupy a dominant position in the lithium cobalt oxide market, and industry concentration continues to increase.