Lithium Battery Material Prices Rose in October as Terminal Players Rushed to Meet Their Annual Guidance

SHANGHAI, Nov 15 (SMM) - The prices of cobalt products rose in an all-round way in October 2022, with cobalt sulphate and cobalt chloride prices up 8% and 7% month-on-month respectively. The ramp-up of integrated precursor manufacturers palpably boosted the production of cobalt salt, and the demand for precursor picked up on a monthly basis as the terminal car makers were in a rush to meet their annual guidance in October. It is expected that in November, the restocking pace of precursors will slow down taking into account the installation cycle as well as the bearish outlook on future prices. Nonetheless, the continued ramp-up of integrated precursor manufacturers will keep promoting the production, and it is expected that the price of cobalt salts may decline slightly.

The prices of industrial-grade and battery-grade lithium carbonate managed a growth of 11% and 13% respectively month-on-month in October. The new capacities ramped up in an orderly manner, but some manufacturers were still under maintenance, resulting in a slight increase in total supply. On the demand side, the orders for cathode active materials (CAMs) recorded an extensive growth, generating more demand for lithium salts as the battery and car manufacturers were both in a rush to produce around the end of the year, hence lithium salt prices rose constantly. In November, on the supply side, the overhaul is expected to be completed, and new capacities will keep ramping up. However, the restocking cycle for the production on the terminal end in the fourth quarter will gradually come to an end. Coupled with the pessimism centering the market dynamics when the vehicle purchase subsidies are cancelled starting from 2023, the production scheduling and restocking of CAM manufacturers have been cautious. It is expected lithium salt prices will grow more slowly.