[SMM Analysis] LCO Prices Remain Stable, December Production Declines

The cobalt industry chain remained weak after the holiday, with sluggish demand and lower costs jointly weighing on prices. Refined cobalt consolidated at lows, traders raised spot-futures price spreads, and downstream buying remained primarily need-based restocking. Trading in intermediate products stalled, with a clear gap between the floor purchase price of $14.5/lb and downstream acceptance prices below $13/lb. Cobalt sulphate offers held near 60,000 yuan/mt, but transactions were difficult, and a lower raw material coefficient further weakened cost support. Cobalt chloride and Co3O4 continued to grind lower, enterprises expanded production cuts and suspensions, and new procurement was insufficient. Leading cobalt powder offers fell to around 360,000 yuan/mt, while small and medium-sized enterprises dropped to 330,000–340,000 yuan/mt, with downstream high-priced inventory dragging on purchases. Ternary cathode precursor prices weakened, export orders were relatively strong, domestic production schedule recovery was limited, and spot order coefficients were expected to trend lower. Ternary cathode materials consolidated at lows, battery cell manufacturers held ample inventory and restocked cautiously; LCO was pressured by both falling costs and weak demand. Going forward, close attention should be paid to end-user order recovery, inventory destocking, and the sustainability of restocking.

Post-holiday battery materials market trends diverged. Lithium ore quotes rebounded slightly, trade inventories were destocked, and ore prices are expected to consolidate in line with lithium carbonate in the short term. Lithium carbonate futures retreated after a rapid rise, closing at 117,300 yuan/mt, down 1.28%; domestic production declined, downstream inventories were significantly destocked, and salt plants continued to ship mainly under long-term contracts. Lithium hydroxide spot order quotes rose to 130,000–140,000 yuan/mt, but purchasing was cautious and transactions were sluggish. Cobalt products and nickel sulphate remained under pressure, cost support weakened, and demand recovery for ternary cathode materials was limited. LFP orders were relatively strong, leading production lines were near full capacity, finished product inventories declined, and the average price rose to 50,400 yuan/mt; resistance to iron phosphate price increases grew. Artificial graphite had strong cost support, separators were driven by NEV, energy storage, and export rush demand, with a tight supply-demand balance; electrolytes rose due to earlier cost pass-through. In the recycling market, inquiries recovered, but transactions had yet to pick up volume. Going forward, attention should be paid to the sustainability of restocking, the realization of production schedules, and changes in raw material prices.

[CATL overtakes LG Energy Solution to rank first globally in battery patents over the past decade] A latest statistical report released by PatSnap's global patent database shows that in the ranking of total patents held by global battery enterprises over the past decade (October 2016 – September 2026), CATL has jumped to first place with 26,574 simple patent families, surpassing South Korea's LG Energy Solution (22,597), which had long held the top spot, by approximately 3,900 patents. This marks the first time a Chinese battery enterprise has claimed the global No. 1 position in total patents over a ten-year window, and it represents the most significant shift in the global battery patent competitive landscape over the past decade. The statistics also point out that from a domestic perspective, CATL ranks first across all three dimensions—total patents, power batteries, and solid-state batteries—across three windows (all-time, past decade, and past three years), holding an absolute leading position with a solid top ranking and spearheading the innovation landscape of China's battery industry. Chinese producers overall have also made notable advances, with EVE, SVOLT, Gotion High-tech, and BYD firmly in the top ten. The center of global battery innovation is shifting from Japan and South Korea to China.