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 series 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 rate narrowed, while lithium carbonate prices pulled back but are expected to potentially rise again. Due to bullish expectations on raw material prices, some battery cell manufacturers opted to stockpile in advance, and this front-loading of orders boosted cathode material demand to some extent.

In terms of market structure, China's ternary NEV market showed high concentration, with most orders held by leading producers. On the consumer market side, order performance was relatively strong from July to August, with recent increased attention on high-nickel products. Additionally, the previous power bank recall incident led some battery cell manufacturers to exit the market, creating a demand gap that prompted other producers to accelerate market expansion, which also stimulated order growth to a certain degree. Production-wise, ternary cathode material output growth in July was ideal for Li Auto, while August saw a slowdown in growth rate but maintained an upward trend.