[SMM Analysis] Weekly Review of the Ternary Cathode Material Market

This week, focusing on the cost side of ternary cathode materials, nickel sulphate prices increased by 110 yuan/mt WoW, manganese sulphate rose by 15 yuan/mt, while cobalt sulphate remained unchanged. However, lithium chemicals saw significant price hikes, with battery-grade lithium carbonate up by 1,650 yuan/mt and lithium hydroxide steadily rising by 370 yuan/mt. As a result, the prices of 5-, 6-, and 8-series ternary cathode materials all increased to varying degrees. Among them, 5-series monocrystalline power materials experienced the largest increase, rising by approximately 400 yuan/mt WoW due to the volatile lithium carbonate prices.

On the supply and demand side, domestic ternary cathode material producers maintained stable production rhythms ahead of the Chinese New Year. Although the total production schedule for this month slightly declined, the operating rate remained around 40%. Compared to previous years, expectations for production cuts during the Chinese New Year were relatively small. Meanwhile, overseas ternary cathode material producers saw further declines in operating rates due to weak end-user orders, leading to a reduction in global high-nickel material production. On the demand side, domestic battery producers' ternary power battery production schedules showed a slight YoY decline before the Chinese New Year, but the decrease was relatively small compared to previous years.