SMM Analysis of China December Ternary Cathode Precursor Production and January Forecast

In December 2024, China's production of ternary cathode precursors increased 1% MoM and was up 13% YoY. Demand side, the production schedule of ternary cathode material plants was slightly adjusted this month. Supply side, the production of top-tier enterprises generally increased. Although significant year-end surges are typical, the production increase was relatively limited due to factors such as weak material demand and inventory control faced by some top-tier enterprises. For most non-top-tier ternary cathode precursor enterprises, production remained largely flat or increased slightly compared to the previous month. However, production declined for some non-top-tier enterprises due to structural shifts in orders. Looking ahead to January, impacted by the Chinese New Year break and reduced material production schedules, China's production of ternary cathode precursors is expected to decrease 11% MoM, with YoY growth also likely to decline by 11%.