[SMM Analysis] Domestic EV Demand for Ternary Cathode Shows Modest Recovery

This week, ternary cathode material prices rebounded. On the raw material front, cobalt sulfate transaction prices edged lower, manganese sulfate held steady, while nickel sulfate rose amid upstream nickel ore supply disruptions and stronger cost support. Lithium carbonate and lithium hydroxide also rebounded due to supply-side disruptions both domestically and internationally, collectively supporting the increase in ternary cathode material prices.

In terms of transactions, given the notable near-term volatility and sharp increases in raw material prices, battery cell manufacturers showed weak purchasing appetite this week, mostly adhering to existing orders. Payable levels remained stable, with no significant changes over the past two weeks.

On the demand side, the domestic EV market showed modest signs of recovery. Upcoming auto shows next week may feature new model launches, which could provide some momentum for future demand. The consumer market remained relatively subdued. On overseas orders, a notable decline is expected in April due to the impact of export rebate policies. From an end-market perspective, U.S. demand has weakened significantly, substantially affecting orders for some overseas cathode manufacturers. In contrast, the European market has performed strongly, providing important support for high-nickel ternary cathode orders.