[SMM Analysis] November Ternary Cathode Materials Price Trends and Supply & Demand Analysis

In November, the average price of 5-series ternary cathode materials (polycrystalline/consumer type) was 95,000 yuan/mt, 6-series ternary cathode materials (monocrystalline/power type) averaged 121,000 yuan/mt, and 8-series ternary cathode materials (polycrystalline/power battery type) averaged 141,000 yuan/mt. Prices generally declined compared to October.

On the raw material side, in November, battery-grade nickel sulphate decreased by 980 yuan/mt, cobalt sulphate decreased by 350 yuan/mt, manganese sulphate decreased by 150 yuan/mt, battery-grade lithium carbonate increased by 4,500 yuan/mt, and battery-grade lithium hydroxide (micro powder) increased by 1,240 yuan/mt. The prices of metal sulphates generally declined in November, but lithium chemicals saw a significant rebound due to robust downstream demand and sentiment to stand firm on quotes from salt producers, with lithium carbonate experiencing a substantial rebound. This provided some support to raw material costs for ternary cathode materials, thus slowing the decline in material prices in November compared to previous months. On the supply side, year-end production schedules at material plants exceeded expectations, with overall production maintaining a growth trend and operating rates increasing. On the demand side, driven by the year-end surge in installations, downstream battery cell production schedules increased, leading to a recovery in material demand, which is expected to continue into December.