LCO prices decline, market adopts wait-and-see attitude

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In April 2025, the production of lithium cobalt oxide (LCO) increased by 27% MoM. On the demand side, in H2, consumer electronics companies will gradually release new products. Stockpiling began in April, and the market is in a peak demand season, with a significant increase in downstream demand. On the supply side, the price of LCO is mainly influenced by the prices of upstream cobalt tetroxide and lithium carbonate. Recently, cobalt prices have surged significantly due to the impact of policies in the Democratic Republic of Congo (DRC). The market generally expects cobalt prices to rise in the future. Therefore, the willingness to sell in large quantities is low, and the main approach is to purchase on an as-needed basis. In May, the downstream consumer market is expected to grow steadily. Downstream battery cell manufacturers will increase their purchases of the main material, LCO. It is anticipated that the production schedule of LCO enterprises will also increase accordingly, with a potential MoM growth of 15%.

SMM New Energy Research Team

Wang Cong 021-51666838

Yu Xiaodan 021-20707870

Ma Rui 021-51595780

Xu Ying 021-51666707

Feng Disheng 021-51666714

Liu Yujun 021-20707895

Lv Yanlin 021-20707875

Zhou Zhicheng 021-51666711

Zhang Haohan 021-51666752

Wang Zihan 021-51666914

Ren Xiaoxuan 021-20707866

Liang Yushuo 021-20707892

Wang Jie 021-51595902

Xu Yang 021-51666760

Yang Lianting 021-51595835

Wang Zhaoyu 021-51666827