This week, ternary cathode precursor prices continued to decline due to a slight drop in raw material prices.

This particular property of lithium resources is what has been driving its importance across industries. They are mainly used in rechargeable batteries as a power source for hundreds of electronic gadgets, including smartphones, laptops, and tablets. Moreover, lithium is a crucial component in the production of high-performance ceramic and glass materials, providing strength and thermal stability. It is also used in lubricating greases and alloys as the high-pressure property of solid lubricant contributes to automotive and aerospace applications requiring lightweight, high-performance materials.

Anode materials play a crucial role in the efficiency and performance of batteries, particularly lithium-ion batteries, which are widely used in consumer electronics and electric vehicles. These materials are responsible for storing and releasing lithium ions during the charging and discharging cycle, directly impacting the battery’s capacity, cycle life, and overall energy density. The selection of appropriate anode materials is a determining factor in the performance characteristics of batteries and therefore holds significant importance in battery manufacturing. With the growing demand for more efficient and sustainable energy storage solutions, the spotlight is increasingly on the development and optimization of anode materials.

Polysilicon is a highly pure type of silicon that is used in the production of solar panels. It is the base material from which solar cells that turn sunlight into electricity are made. Since polysilicon has an important role in the solar energy supply chain, its purity, and quality have a direct effect on the efficiency and performance of solar panels.

LFP will continue to encroach on the market share of ternary materials.

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.

The CEO Ivan Vella affirmed current production guidance, citing stable project performance with no plans to adjust forecasts.

Pilbara is shifting to a “P850” model, focusing production at the Pilgan plant and placing the higher-cost Ngungaju plant on standby from December.

The management team acknowledges challenging market conditions, with high costs in the lithium segment, while insisting the company is "comfortable", and the cost reduction measures are effective.