[SMM Analysis] Ternary cathode material production in May was up 3.52% MoM

In May 2025, SMM's production of ternary cathode material increased by 3.52% MoM and 23.91% YoY.

The overall operating rate of the industry reached 43% that month, further rebounding from April. In terms of series structure, the 5-series accounted for 16% of ternary cathode material production in May, the 6-series accounted for 35%, the 8-series accounted for 33%, and the 9-series accounted for 14%. Among them, the market share of the 5-series ternary cathode material significantly contracted due to rising costs and lower-than-expected sales of some traditional car models in the downstream market. The 6-series material, leveraging its dual advantages in cost and performance, further expanded its market share, squeezing the market space of the 8-series material. The 9-series material, on the other hand, saw an increase in market share due to a rise in overseas orders. In the NEV market, overall auto sales at the end-user level were relatively mediocre. Coupled with the continuous decline in lithium carbonate prices, the market's overall sentiment towards stockpiling became cautious. In the consumer market, the end-use demand for 3C and small power applications performed well, and the capacity utilization rate of top-tier enterprises in the consumer cathode material sector remained at a high level.

Looking ahead to June, the market maintains a bearish sentiment towards raw material prices, with production scheduling intentions becoming more conservative. Additionally, the peak stockpiling period ahead of the "618" shopping festival in the consumer market has concluded, and the market has entered a destocking phase. It is expected that the production of ternary cathode material will decline by 1.17% MoM in June.