[SMM Analysis] September Demand Growth Falls Short of Expectations, Electrolyte Production Growth Narrows

Published: Oct 15, 2026 15:23 (GMT+8)

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[SMM Analysis: September Demand Growth Falls Short of Expectations, Electrolyte Production Growth Narrows] In September 2026, although both supply and demand in China's electrolyte industry expanded simultaneously and market sentiment continued to improve, the growth rate narrowed notably compared with the previous month. According to SMM data, China's total electrolyte production in September rose about 2.8% MoM from August and increased about 66% YoY.

In September 2026, despite simultaneous capacity expansion on both the supply and demand sides of China's electrolyte industry, market sentiment still improved somewhat, though the growth rate narrowed significantly from the previous month. According to available data, China's total electrolyte production in September rose about 2.8% MoM from August and increased about 66% YoY.

In September, downstream demand and production of electrolyte maintained positive growth, but overall performance fell short of market expectations. On the demand side, the energy storage segment sustained high prosperity, with battery cell capacity continuing to ramp up and production steadily rising, serving as a key support for electrolyte demand. The EV sector showed pronounced divergence: sales of low and mid-end car models equipped with LFP batteries demonstrated strong resilience, and robust demand for models powered by second-generation blade batteries provided solid support; however, sales of high-end ternary extended-range models were relatively weak, dragging down the overall NEV market, with the auto market exhibiting an "underperform in peak season" pattern. Meanwhile, affected by consumption tax factors, some September-October orders were front-loaded into August production schedules, compressing the growth space for battery cells in September; even with some National Day holiday orders organized for early production, the MoM growth rate of electrolyte production still slowed.

Looking ahead, in October, driven by the traditional "October peak season," downstream demand is expected to recover further. Energy storage demand is expected to remain steady and positive; the EV sector may see a phased export rush due to restrictions on hybrid car models exported to Europe. However, since some orders originally scheduled for the National Day holiday period in October have already been front-loaded into September production, electrolyte production is expected to continue rising, but the growth magnitude will be relatively limited.

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SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lyu Yanlin 021-20707875

Zhang Haohan 021-51666752

Wang Zihan 021-51666914

Wang Jie 021-51595902

Xu Yang 021-51666760

Xu Mengqi 021-20707868

Hu Xuejie 021-20707858

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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