[SMM Analysis] Production of ternary cathode precursor in June increased by 2.3% MoM

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In June 2025, SMM's ternary cathode precursor production increased by 2.3% MoM and decreased by 3.18% YoY.

From the perspective of series structure, the 5-series precursor accounted for 16.76%, the 6-series accounted for 42.33%, and the 8-series accounted for 28.34%. Among them, the 6-series products, with their significant cost advantages, gained more favour from producers amid the ongoing price war in the terminal automotive market. Their market share continued to rise, exerting certain pressure on the 5-series and 8-series products.

In the NEV market, domestic terminal vehicle sales fell short of expectations, with overall weak demand. Only the stockpiling demand for a small number of new car models boosted a certain number of orders. The overseas market also performed weakly, with some orders being transferred. In the consumer market, the demand for small power in June was mediocre compared to the previous two months. Coupled with the overall downward trend in raw material prices that month, it had a certain negative impact on market transactions. Meanwhile, as June marked the mid-year period, some enterprises conducted destocking operations to improve cash flow.

Looking ahead to July, downstream demand is expected to remain generally weak, but there will be periodic restocking activities. The market is expected to recover slightly, with SMM's ternary cathode precursor production schedule projected to increase by 1.14% MoM in July.