【SMM Analysis】Ternary cathode precursor production increased 19.75% MoM in March.

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In March 2025, China's ternary cathode precursor production increased by 19.75% MoM, but decreased by 10.57% YoY.

By series, the 5-series ternary cathode precursor accounted for 20% in March, the 6-series for 37%, and the 8-series for 33%, with the 6-series precursor increasing slightly.

Supply side, due to more natural days in March and the recovery from the production decline in February caused by holidays and shutdowns, the overall market supply has basically returned to pre-holiday levels. Demand side, affected by the sharp rise in raw material prices in March, some ternary cathode material producers, anticipating further price increases, stockpiled in advance, driving a short-term increase in precursor orders.

However, in the long term, the uncertainty of raw material price fluctuations and the continuous squeeze of LFP on the ternary market have kept the overall demand for ternary cathode precursors weak. The production of ternary cathode precursors is expected to increase by 3.49% MoM in April.

SMM New Energy Research Team

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Ying Xu 021-51666707

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lyu 021-20707875

Ye Yuan 021-51595792

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Yushuo Liang 021-20707892

Jie Wang 021-51595902

Yang Xu 021-51666760

Lianting Yang 021-51595835