[SMM Analysis] Ternary cathode material production rose 0.93% MoM in June

In June 2025, SMM's production of ternary cathode material increased by 0.93% MoM and 31.54% YoY. The overall operating rate of the industry was 44%, showing a slight rebound compared to May.

In terms of series structure, the 5-series accounted for 14.76%, the 6-series for 35.82%, the 8-series for 31.74%, and the 9-series for 15.28%. The market share of 5-series ternary cathode material declined significantly due to rising raw material costs and a decrease in performance competitiveness. The 6-series continued to expand its market share while balancing cost and performance advantages. The 8-series, mainly used in overseas NEV markets, saw a slight drop in its share due to weaker-than-expected overseas auto sales and the fact that it had not yet entered the peak season. The 9-series, however, experienced continuous growth in production in recent months due to order transfers.

In the NEV market, raw material prices generally declined in June. Coupled with the impact of the semi-annual period, producers generally carried out destocking to optimize cash flow, and the sales performance of terminal finished vehicles was mediocre. The consumer market also saw mediocre demand, with some sectors experiencing a temporary decline. Meanwhile, downstream battery cell manufacturers significantly drove down prices, leaving very limited profit margins for cathode materials.

Looking ahead to July, the market may experience a temporary recovery, but the extent of the recovery is expected to be limited. It is projected that the production of ternary cathode material will increase by 1.31% MoM.