[SMM Data] Electrolyte production increased MoM in May 2025, with output expected to decline slightly in the following month

In May 2025, China's electrolyte production increased by 1% MoM and approximately 44% YoY. Demand side, the growth rate of end-use market demand slowed down. Coupled with the prolonged slow decline of electrolyte prices in the low-price range, battery cell enterprises, considering cost and market uncertainties, opted for "purchasing as needed," resulting in insufficient momentum for electrolyte demand growth and limited production growth. Supply side, electrolyte enterprises adopted a "produce based on sales" strategy. Benefiting from the increase in battery cell production compared to April, electrolyte enterprises moderately raised their operating rates according to market demand, driving up production.

Looking ahead to June, with the withdrawal of the mandatory energy storage allocation policy, the support from rigid demand in the ESS sector will weaken. Additionally, the auto sales boom brought about by the previous auto show will gradually fade, leading to insufficient consumption momentum in the end-use market. It is expected that end-use demand will decline to a certain extent, and the market demand for electrolyte, a key supporting material, will also contract accordingly. It is projected that China's electrolyte production will decrease by approximately 1% MoM and increase by approximately 44% YoY in June.

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