[SMM Data] Electrolyte production increased slightly MoM in June 2025, and is expected to increase slightly in July

In June 2025, China's electrolyte production rose by 0.1% MoM and approximately 46% YoY.

Demand side, the growth rate of end-use market demand slowed down. Coupled with the prolonged low-price range of electrolytes, battery cell enterprises, considering cost and market uncertainties, opted for "purchasing as needed," resulting in insufficient growth momentum for electrolyte demand 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 May, electrolyte enterprises moderately raised their operating rates according to market demand, driving production growth.

Looking ahead to July, in the domestic market, with the withdrawal of the mandatory energy storage allocation policy, the rigid demand support in the ESS sector has weakened somewhat. However, the significant growth in overseas ESS demand has formed a hedge, driving overall ESS demand growth. The downward trend in demand in the NEV market is expected to slow down. As automakers' inventory vehicles have been continuously digested over a period of time, inventory pressure has significantly eased, prompting battery cell enterprises to slow down the pace of production cuts, thereby gradually mitigating the downward trend in NEV market demand. However, overall, the end-use market demand has not yet shown significant growth. As a key supporting material, the demand side of the electrolyte market is also relatively stable. It is expected that China's electrolyte production will rise by approximately 0.2% MoM and approximately 46% YoY in July.

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SMM New Energy Research Team

Wang Cong, 021-51666838

Ma Rui, 021-51595780

Feng Disheng, 021-51666714

Lv Yanlin, 021-20707875

Zhang Haohan, 021-51666752

Zhou Zhicheng, 021-51666711

Wang Zihan, 021-51666914

Wang Jie, 021-51595902

Xu Yang, 021-51666760

Xu Mengqi, 021-20707868

Hu Xuejie, 021-20707858