In August 2025, China's ternary cathode material production rose 6.99% MoM but fell 5.07% YoY. The overall industry operating rate continued to rebound, reaching 48%.
By product structure, 5-series materials accounted for 15.63%, remaining basically flat; 6-series materials took 37.49%, further increasing due to strong demand from the NEV market during the September-October peak season, squeezing some market share from high-nickel products. High-nickel products saw slight declines, with 8-series at 28.94% and 9-series at 15.67%.
NEV market side, producers generally saw order rebounds to prepare for the traditional peak season, though significant growth remained concentrated among suppliers to leading battery cell manufacturers. Consumer market side, as July already posted solid growth, end-use demand showed no major increase this month, keeping production basically flat.
For September, end-use demand is expected to maintain current robust levels. However, as producers' rapid output growth in August already front-loaded some September demand through stockpiling, coupled with persistently high costs and anticipated further price rises for raw materials like nickel, cobalt, and lithium, supply tightness looms. Some producers may comprehensively assess cost factors when taking downstream orders, potentially resulting in actual order volumes below demand. Overall, September production is projected to dip 1.51% MoM and decline 1.78% YoY.
