The growth rate of ternary cathode production is relatively ideal [SMM Weekly Review of Ternary Cathode Material Market]

This week, prices of all ternary cathode material categories continued to rise. The sustained increase in raw material prices provided strong support for ternary cathode material prices, specifically: nickel sulphate and cobalt sulphate prices maintained an upward trend, with current increases remaining relatively mild, but the market generally expects further upside potential; lithium hydroxide prices extended gains though the growth narrowed, while lithium carbonate prices pulled back but are expected to resume upward movement. Due to bullish expectations on raw material prices, some battery cell manufacturers opted for early stockpiling, and this front-loading of orders boosted demand for cathode materials to some extent.

In terms of market structure, China's ternary NEV market shows a highly concentrated pattern, with most orders held by leading producers. On the consumer market side, order performance was relatively strong in July-August, with recent increased attention on high-nickel products. Additionally, influenced by previous power bank recall incidents, some battery cell manufacturers exited the market, creating a demand gap that prompted other producers to accelerate market expansion, which also stimulated order growth to some degree. Production-wise, ternary cathode material output growth in July was ideal for Li Auto, while August growth slowed down but remained positive.