Home / Metal News / In June, LFP material production increased 1.56% MoM. Strong ESS demand offset the slowdown in the NEV market [SMM lithium battery market analysis].

In June, LFP material production increased 1.56% MoM. Strong ESS demand offset the slowdown in the NEV market [SMM lithium battery market analysis].

iconJul 1, 2025 10:13
Source:SMM
[SMM Lithium Battery Market Analysis: China's LFP Material Production Rose 1.56% MoM in June] In June 2025, China's LFP cathode material production rose 1.56% MoM and was up 59% YoY, with an industry operating rate of 57%. The operating rates of leading material producers were significantly increasing, but production at some small and medium-sized producers declined slightly due to fluctuations in downstream battery cell manufacturers' demand.

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SMM reported on July 1,

that in June, China's LFP material production increased by 1.56% MoM, with strong ESS demand offsetting the slowdown in the NEV market.

In June 2025, China's LFP cathode material production increased by 1.56% MoM and 59% YoY, with an industry operating rate of 57%. The operating rates of leading material manufacturers have significantly improved, but some small and medium-sized producers have experienced a slight decline in production due to demand fluctuations from downstream battery cell manufacturers.

Performance varies by sector: In the NEV market, influenced by passenger vehicle automakers' active destocking, downstream battery cell demand has slowed down, leading to a slight reduction in production of LFP cathode materials for NEVs at the material end.In the ESS sector, driven by accelerated export orders from battery cell manufacturers and favorable policy developments in overseas markets such as Europe and Australia, ESS installations have seen significant growth. With sustained strong demand, considering both the NEV and ESS sectors, LFP materials have shown an overall increasing trend.

According to SMM statistics, among June's LFP material production, Generation 2 and 2.5 products accounted for approximately 31% of total production, Generation 3 products accounted for about 47%, Generation 3.5 products accounted for 12.3%, and Generation 4 products accounted for about 9.6%.

Looking ahead to July: the overall NEV market remains weak, but there is a structural undersupply of battery cells for some popular car models, contrasting with weak demand for other models. It is expected that the production schedule for NEV battery cells will remain stable; the ESS market is expected to continue its high growth, becoming the main support for industry growth.

 

Wang Cong 021-51666838

Ma Rui 021-51595780

Zhou Zhicheng 021-51666711

Wang Zihan 021-51666914

Lv Yanlin 021-20707875

Zhang Haohan 021-51666752

Wang Jie 021-51595902

Chen Bolin 021-51666836

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