[SMM Analysis] Ternary cathode material production rose 5.75% MoM in July

In July 2025, SMM ternary cathode material production continued its growth trend, up 5.75% MoM and 16.65% YoY. The overall industry operating rate rebounded to 45%, slightly higher than June.

By product structure, 5-series materials accounted for 15.05%, while 6-series maintained dominance at 36.61%, with 8-series and 9-series holding 29.06% and 17.37% market shares respectively. As the mainstream product in China's power battery market, 6-series materials saw expanding market share, while overseas markets remained dominated by high-nickel products, with notable demand growth for 9-series materials partially replacing 8-series.

In the power battery market, ternary cathode material orders concentrated among leading producers. With the approaching September-October peak season for auto sales, cathode material stockpiling has commenced. For consumer electronics, anticipating raw material price increases, some battery cell manufacturers adopted advance procurement strategies, with this front-load order effect effectively boosting cathode material demand. Additionally, demand gaps created by some cell manufacturers exiting the market after power bank recalls prompted competitors to accelerate market expansion, further stimulating order growth.

For August, as some front-load orders were fulfilled in July, ternary cathode material production growth is expected to moderate, with projected MoM increase of 3.07%.