China Ternary Cathode Material Precursor Output Likely to Drop 15% MoM in Apr

SHANGHAI, Apr 27 (SMM) - According to SMM research, China's ternary cathode material precursor is expected to drop by more than 15% MoM in April. Top-tier precursor manufacturers’ production fell by more than 10%, and some small factories even stopped the production, mainly due to a significant drop in downstream demand.

Affected by the extensive spread of COVID in China, the operating rates of car companies fell sharply and orders for power batteries also decreased. In addition, the prices of raw materials fluctuated violently, hence ternary cathode materials and battery companies relied on their in-plant stocks and reduced the purchases, resulting in a contraction of demand for ternary cathode material precursor.

Considering that the production resumption of car companies has been less than expected for the moment, the orders for May are still at a low level. SMM will continue to observe the impact of downstream demand on the precursor market.