On May 12, the Changzhou Municipal Bureau of Ecology and Environment in Jiangsu Province announced that the Environmental Impact Assessment (EIA) document for the project of Lithium Source (Jiangsu) Technology Co., Ltd., which aims to produce 240,000 tonnes per year of high-performance lithium battery cathode material (lithium iron phosphate, LFP), has been approved. According to Chempricehub's analysis, the bull-bear rating for LFP is -1. The approval of this project's EIA for the 240,000-tonne high-performance LFP capacity expansion will significantly increase domestic LFP market supply once the production comes online, exerting bearish pressure on spot prices. For lithium carbonate, the bull-bear rating is 1. LFP is a core downstream application for lithium carbonate; this 240,000-tonne LFP capacity expansion will boost demand expectations for lithium carbonate, providing bullish support for its price. On May 11, 2026, the main lithium carbonate contract 2609 closed at 205,020 yuan/tonne, up 4,080 yuan/tonne from the previous trading day, with optimistic demand expectations underpinning a strong futures price performance.