[SMM Data: Electrolyte Operating Rate in October] The operating rate of electrolyte in October 2024 was approximately 39.93%. It is expected that the operating rate will continue to rise in November.

[SMM Data: LiPF6 Operating Rate in October] The operating rate of LiPF6 in October 2024 was approximately 70.6%. The operating rate is expected to continue rising in November.

Since November, the price of battery-grade lithium carbonate has been continuously recovering, and this week saw a significant increase. The underlying reasons can be analyzed from the supply-demand fundamentals and sentiment perspective

【SMM Analysis：Cobalt sulphate production continued to decline in October】In October, China's cobalt sulphate production decreased by 1% MoM and 28% YoY.

【SMM Analysis】Saudi Arabia has recently launched a significant energy project, initiating the prequalification process for an 8GWh battery energy storage project. This is the country's first battery energy storage system (BESS) project under the public-private partnership (PPP) model. This initiative is part of Saudi Arabia's energy transition plan, aiming to achieve 48GWh of energy storage capacity by 2030 to support its goal of having 50% renewable energy in its power mix and ultimately reaching net-zero carbon emissions by 2060.

[SMM Data: Electrolyte Production Data for October] Electrolyte production in October 2024 increased 8.6% MoM, and the increase in November is expected to be 6.4%.

[SMM Data: LiPF6 October Production Data] LiPF6 production in October 2024 was up 9% MoM, with an expected increase of 6% in November.

According to SMM statistics, China's production of ternary cathode materials in Q3 2024 was 178,000 mt, up 5% YoY, with an operating rate of around 41%. Although production increased YoY, the revenue and net profit of ternary cathode materials companies were lower-than-expected, mainly due to multiple factors such as intensified market competition and declining raw material prices. For instance, the monthly average price of 6-series ternary cathode materials (monocrystalline/power type) dropped from 131,000 yuan/mt in July 2024 to 125,000 yuan/mt in September 2024, according to SMM data. The significant decline in material prices had a substantial impact on the companies' revenue.

【SMM Analysis】Recently, the Spanish renewable energy developer Grenergy signed a large-scale supply contract with CATL. CATL will provide a 1.25GWh EnerX battery energy storage system for its Oasis de Atacama Phase IV project in Chile. The total capacity of the project is 4.1GWh. Previously, BYD had secured orders for a total of 3GWh energy storage systems for the first three phases of the project.