【SMM Analysis】Production Changes in China's Ternary Cathode Precursor Market by Series

In 2020, among China's total production of ternary cathode precursor, the 5-series NCM had the highest production, accounting for 43.15%, followed by the 6-series NCM (30.48%), the 8-series NCM (17.77%), and the 9-series NCM and NCA high-nickel products mainly for export (7.87%).

By 2023, the proportion of the 5-series NCM visibly declined to 23.89%, while the 6-series NCM increased to 24.51%. One reason for this shift is that, considering overall factors from 2020 to 2023, the 6-series NCM became more cost-effective and gradually favored by manufacturers, leading to a trend of some 5-series NCM shifting to the 6-series NCM. Another reason is the adaptation to the requirements of end-users (the car companies). The proportion of the 8-series NCM significantly rose to 33.67%, and the 9-series NCM also increased from 7.87% to 17.53%, reflecting the high-nickel trend in the precursor industry.

As of now, the mainstream types in the China's market are still the 5-series NCM and 6-series NCM, with the proportion of the 8-series NCM continuing to increase.

(Data source: SMM Database)