[SMM Analysis] Driven by the market demand for lithium cobalt oxide (LCO), Co3O4 production increased significantly MoM in April.

In April 2025, the production of Co3O4 increased significantly, with both MoM and YoY growth.

The main reason was that downstream LCO manufacturers had low inventory levels. To maintain normal production, they had strong procurement demand for Co3O4. Additionally, some manufacturers were concerned about a potential further increase in the spot price of Co3O4 in the future, leading to a certain level of advance procurement demand. This further enhanced market activity and drove an increase in the planned production of Co3O4 enterprises.

It is expected that in May 2025, due to the depletion of downstream LCO manufacturers' inventory to low levels, coupled with stockpiling demand driven by the release of new models, a new round of procurement peak may occur. This will further increase the orders of Co3O4 enterprises, achieving sustained MoM and YoY growth.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Yuan Ye 021-51595792

Feng Disheng 021-51666714

Xu Ying 021-51666707

Lv Yanlin 021-20707875

Liu Yujun 021-20707895

Yu Xiaodan 021-20707870

Zhou Zhicheng 021-51666711