[SMM Analysis] In August 2024, the demand for ternary cathode materials rebounded, and production increased slightly.

In August 2024, china's ternary cathode materials production increased 5% mom and 10% yoy, with an overall operating rate of 43%, up from july. supply side, influenced by the traditional nev market "september-october peak season," demand from battery cell manufacturers increased, leading to higher orders for ternary cathode materials and a slight increase in production scheduling. in terms of series proportion, 5-series ternary cathode materials accounted for 23%, 6-series for 31%, and 8-series for 40% in august. compared to the previous month, the proportion of 5-series decreased, while the increase in 6-series was more significant. market structure, the top three producers in august remained ronbay, ruixiang, and bangpu, with cr3 at 44%, cr5 at 57%, and cr10 at 78%, indicating a further increase in market concentration and a more pronounced leading effect.

Demand side, nev sales have consistently maintained stable growth, with a penetration rate above 50%, and will continue to capture the market share of fuel vehicles. however, the growth space for ternary cathode materials is not significant, with the main increase coming from lfp. small power battery sector, after last year's inventory reduction by downstream battery cell manufacturers, demand for small power batteries has been good this year, but the price war remains intense, with companies adopting volume discount strategies to capture market share. it is expected that ternary cathode materials production in september will remain stable, flat mom, and up 10% yoy.