SMM July 28 news: In June 2026, China’s LFP cathode material export market saw explosive growth with both volume and price rising. Total exports for June reached as high as 15,379.6 mt, surging 101.7% MoM from May, setting a new monthly record high.While export scale jumped, the average export price for the month rose to $9,125.1/mt, an increase of about 11.1%.
Looking at the destination breakdown, exports across countries were extremely divergent compared to May, forming a three-pole pattern of “North America surging, Southeast Asia taking the baton, and Europe accelerating”:
1. North American market: a dual boost from policy-driven installation rushes and capacity ramp-ups
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US: remained firmly in the top spot with exports of 5,409.5 mt, up 79.4% MoM from May (3,014.7 mt). Its absolute growth was staggering.
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Canada: the biggest “dark horse” in June, with exports skyrocketing from 85.2 mt in May to 2,464.5 mt, a nearly 28-fold MoM surge. The sharp increase in the Canadian market was very likely linked to large-scale production ramp-up at leading North American battery makers (such as Volkswagen’s PowerCo battery plant in Ontario, Canada, Tesla’s 4680 capacity, or CATL’s and Gotion High-tech’s supporting capacities in North America). At the same time, as detailed rules on “foreign entities of concern” (FEOC) under the US IRA (Inflation Reduction Act) were implemented, downstream end-users may have undertaken a round of inventory restocking in June to hedge against potential future trade policy fluctuations.
2. Indonesia emerges within the Southeast Asian “iron triangle”
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Indonesia: performance was exceptionally eye-catching, with exports rocketing from 366 mt in May to 2,486.4 mt, a 579% MoM surge, leaping to become the second-largest export destination for the month. Indonesia’s explosion was inseparable from deep deployment by Chinese battery enterprises in the country. With capacity release in Indonesia’s local EV and energy storage industry chains, demand for upstream LFP cathode material is expanding exponentially. Southeast Asia is no longer just an “assembly plant” but is rapidly becoming a highly promising end-use consumption and production hub.
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Vietnam and Thailand: Vietnam (420 mt → 620 mt, +47.6% MoM) grew steadily; Thailand (2,030.6 mt → 1,999.6 mt) was basically flat, with volumes staying large.
3. European market: Poland rebounded sharply from a bottom
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Poland: stood out in June, surging from 32 mt in May to 644 mt, a 19-fold MoM increase. As Europe’s largest lithium battery manufacturing hub (LG Energy Solution, Northvolt, etc.), its import volume recovered strongly, indicating that European power battery capacity is back on track after an earlier trough. South Korea (120 mt → 80.5 mt, -33% MoM) contracted, reflecting that Japanese and South Korean battery makers are being squeezed intensively by the cost-effectiveness of Chinese LFP materials in the low- and mid-end market.
On the price front, typically, raw material exports would see price declines due to economies of scale, but the average LFP export price in June ($9,125.1/mt) rose by $915/mt compared to May ($8,210/mt) , mainly driven by raw material cost pass-through: domestic lithium carbonate and iron phosphate prices both rose in June, directly pushing up export prices.
The MoM doubling of total exports in June confirmed our judgment in last month’s flash report — “overseas demand remained robust, growing several-fold YoY.” Overseas battery capacity is in a critical transition from the “start-up phase” to the “scale-up phase,” creating a dividend period of “rising volume and prices” for the industry. For domestic material enterprises, moving quickly to lock in long-term contracts with core customers in North America, Europe and Southeast Asia while raising product technology barriers will be key to capturing high-premium overseas market share in H2. (Data sources: SMM and customs import-export statistics)
SMM New Energy Research Team
Wang Cong 021-51666838
Feng Disheng 021-51666714
Yang Chaoxing 021-20707860
Wang Zihan 021-51666914
Wang Jie 021-51595902
Chen Bolin 021-51666836
Wang Yizhou 021-51595909
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
Lin Ziya 021-51666902
Yang Le 021-51595898
Li Yisha 021-51666730
Wang Zhaoyu 021-51666827
Xiao Wenhao 021-51666872
Zhang Jing 021-51666878
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