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SMM News, May 30, 2025,
In May 2025, China's LFP production increased by approximately 6.7% MoM and 43% YoY, with the industry's overall operating rate at around 56%. In the ESS sector, overseas ESS orders were impacted by the US's reciprocal tariff policy in early May, leading to expectations of a certain reduction in volume, which caused some material manufacturers to slow down their production pace. However, after the negotiations between China and the US concluded in mid-May, the reciprocal tariff was significantly reduced from 125% to 10% within the next 90 days. This tariff adjustment prompted downstream battery cell manufacturers to accelerate production and rush exports, thereby driving the recovery of orders for LFP material manufacturers and leading to a more active production environment. In the NEV market, material manufacturers' overall production scheduling performance shifted from strong to weak this month. Auto sales maintained a good level at the beginning of the month, but since mid-month, auto sales have been sluggish, causing downstream battery cell manufacturers to gradually reduce their orders for LFP cathode materials. As a result, some material manufacturers ultimately experienced production and delivery volumes that fell short of expectations. Looking ahead to June, the LFP market will face demand differentiation. Affected by the traditional off-season for automobile sales, it will be difficult for demand in the NEV market to achieve breakthroughs, and production scheduling expectations for LFP materials and battery cells are expected to decline. However, after the tariff reduction in the ESS market, downstream battery cell manufacturers will continue to actively produce and rush exports, with demand remaining strong and growing. Overall, the increase in LFP material production scheduling for June is expected to be limited.
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Zhou Zhicheng 021-51666711
Wang Zihan 021-51666914
Lv Yanlin 021-20707875
Zhang Haohan 021-51666752
Wang Jie 021-51595902
Xu Yang 021-51666760
Chen Bolin 021-51666836
