[SMM Analysis] Production of ternary cathode precursor in April was up 0.36% MoM

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In April 2025, China's production of ternary cathode precursor increased by 0.36% MoM and decreased by 5.55% YoY.

In terms of the proportion by series, the 5-series accounted for 22%, the 6-series accounted for 39%, and the 8-series accounted for 29%, with the 6-series precursor showing a relatively significant increase in proportion.

In the domestic market, precursors for consumer electronics and small power applications benefited from strong downstream demand, leading to a higher volume of orders and an increase in supply. Consequently, the operating rates of enterprises primarily engaged in consumer electronics precursors also rose. In contrast, the growth in precursors for large power applications was relatively limited, mainly relying on existing projects to maintain production, lacking the impetus from new demand. In the overseas market, affected by the recent adjustment of US tariff policies, some Japanese and South Korean ternary cathode material enterprises reduced their orders, resulting in a decrease in orders for some domestic precursor plants primarily serving the overseas market. Due to these reasons, the overall market supply of precursors remained basically flat compared to the previous month.

Looking ahead to May, it is expected that the increase in demand will still be limited. Additionally, with downstream ternary cathode material plants generally in the destocking phase, the supply of precursors may decrease by 1.01% MoM.