【SMM analysis】China's Electrolyte Industry: March 2025 Performance and April Outlook

In March 2025, China's electrolyte industry witnessed a positive development trend. The output of electrolyte increased by 14% month-on-month and 60% year-on-year. This significant growth was mainly due to the steady rise in terminal market demand. As demand increased, the operating rate of electrolyte factories also rose accordingly, further driving up production. However, the decline in the price of lithium hexafluorophosphate led to a slight drop in electrolyte prices. Some enterprises chose to purchase on demand, with a weak willingness to stockpile raw materials, and most orders were on a just-in-time production basis. Meanwhile, the operating rate of cell companies also increased compared to February, prompting electrolyte factories to moderately raise their operating rates based on market demand.

Looking ahead to April, terminal demand is expected to continue growing, and the demand for electrolyte will also further increase. The output of electrolyte in China is projected to rise by approximately 3% month-on-month and 45% year-on-year