SHANGHAI, Jan 5 (SMM) - China’s PCAM (precursor of cathode active material) output stood at 585,000 mt in 2021, up 90% YoY. The growth rate of the production of PCAM has increased significantly, mainly due to the booming NEVs market in 2021 and the rising demand for NMC materials. Except for the holiday in February and the reduction in production capacity in Hunan, Guangdong, Jiangsu and other regions due to power rationing, the output of precursors maintained a month-on-month growth rate of about 7%.
In terms of output structure, the proportion of high nickel materials increased significantly in 2021, gradually approaching that of the 5 and 6-series NMC materials. However, the demand for LFP has increased considering the costs in the domestic NEVs market in 2021. The domestic high-nickel materials’ growth rate was less than expected due to their high costs, while the growth rate of the overseas high-nickel materials market was gradually increasing. The market was still dominated by 5 and 6-series NMC materials, but the total proportion of them has fallen by about 10% from 2020. The proportion of 6-series increased slightly from 2020 as domestic leading battery companies have increased their purchases of 6-series, and overseas market gradually switched from 6-series to 7 and 8-series. The proportion of 5-series decreased sharply as the mainstream products in the domestic power battery market have gradually been shifted from 5-series to high-nickel materials（65-series or above).
