[SMM Data] December Electrolyte Production Down MoM, Output Expected to Continue Declining Next Month

In December 2024, China's electrolyte production fell 5% MoM but was up 124% YoY. The growth rate of end-use market demand slowed, leading to an overall decline in demand. The operating rate of electrolyte factories experienced a certain decrease compared to the previous month. Following an increase in LiPF6 prices at the beginning of the month, which later stabilized, some electrolyte enterprises chose to wait and observe until raw material prices became more stable. Overall, the willingness to stockpile raw materials was weak, with most orders being produced based on orders. Meanwhile, the operating rate of battery cell enterprises began to decline compared to November, prompting electrolyte factories to moderately reduce their operating rates in response to market demand, resulting in a drop in production.

Looking ahead to January, end-use demand is expected to continue declining, with electrolyte demand also expected to decrease to some extent. China's electrolyte production in January is projected to fall approximately 9% MoM but increase about 98% YoY.