Ternary Cathode Precursor
In the week of May 20-23, the prices of ternary cathode precursor rose, driven by rising prices of nickel salt and cobalt salts, which significantly increased its raw material costs. Precursor producers were plagued by rising nickel salt prices and tight nickel salt supply. Some integrated ternary cathode makers reduced their production of in-house stocked up in advance. To cope with rising raw material prices and raw material shortages, precursor producers mainly focused on fulfillment of long-term contracts. Looking ahead, high raw material prices should keep precursor prices at high levels, but weak demand means upside room will be minimal.
Ternary Cathode Material
Ternary cathode material prices rose in the week of May 20-23, boosted by climbing raw material prices. With growing amount of client-supplied lithium carbonate, cathode makers may reduce external procurement. On the supply side, since mid-to-late May, some ternary cathode material manufacturers have seen a reduction in orders, leading to a greater-than-expected decrease in May's production schedule. On the demand side, major battery cell manufacturers have reduced their demand for ternary cathode materials in May due to considerations of their finished product and raw material inventories. In the consumer and e-bike markets, the recent fluctuations in lithium prices have led to a wait-and-see sentiment among downstream buyers. It is expected that ternary cathode materials will remain weak in the future.
LFP
LFP price decline slowed down in the week of May 20-23, mainly tracking swings of lithium carbonate prices. LFP processing fees saw no large adjustments. LFP market was relatively stable in May. Energy storage market maintained positive growth rate. NEV sales were robust, but risk falling in June. To cope with rising stocks, some battery cell makers reduced LFP orders for June, but most LFP producers have not yet reported a sharp decline in their orders.
LCO
In the week of May 20-23, LCO prices remained stable. LCO supply saw a slight increase in May. Competition among manufacturers remains intense. On the demand side, battery cell manufacturers continue to restock as needed. Looking ahead, as lithium prices are expected to decline, LCO material prices are anticipated to remain weak as well.
