[SMM Analysis] Downstream Production Surge Slows, December Separator Production Slightly Declines

SMM, December 31:

In December 2024, China's lithium battery separator production decreased by 7% MoM, up 58% YoY. Among them, wet-process separator production decreased by 6% MoM, up 67% YoY, while dry-process separator production decreased by 10% MoM, up 36% YoY.

Supply and demand side, in December, the year-end push for annual target in downstream sectors slowed compared to earlier periods, leading to a slight decline in demand for lithium battery separator materials. However, on one hand, favorable factors such as year-end grid connection in the ESS sector and trade-in subsidies in the power sector still existed, sustaining some demand for separator materials. On the other hand, due to the earlier timing of the 2025 Chinese New Year, separator companies generally stockpiled in advance for January. Additionally, current separator prices were already at relatively low levels, while separator companies maintained guaranteed operating rates, showing weaker bidding intentions. As a result, separator material prices remained relatively stable, which also supported production willingness among separator companies. Therefore, although separator material production decreased in December, the scale remained relatively considerable.

In January, due to the impact of the Chinese New Year holiday, downstream demand is expected to weaken further. At the same time, separator companies generally hold certain inventory levels, leading to controlled production. It is estimated that China's lithium battery separator production in January may continue to decline, down 10% MoM, up 52% YoY.

SMM New Energy Research Team

Cong Wang 021-51666838
Xiaodan Yu 021-20707870
Rui Ma 021-51595780
Ying Xu 021-51666707
Disheng Feng 021-51666714
Yujun Liu 021-20707895
Yanlin Lü 021-20707875
Ye Yuan 021-51595792
Chensi Lin 021-51666836
Zhicheng Zhou 021-51666711
Haohan Zhang 021-51666752
Zihan Wang 021-51666914
Xiaoxuan Ren 021-20707866
Yushuo Liang 021-20707892
Jie Wang 021-51595902
Yang Xu 021-51666760