Strong demand for ternary cathode materials is expected to continue until year-end [SMM Ternary Cathode Material Market Weekly Review]

Ternary cathode material prices remained generally stable this week. On the raw material side, nickel sulphate offers saw a slight decrease, while cobalt sulphate and manganese sulphate prices held steady; lithium carbonate and lithium hydroxide prices pulled back. Given the limited fluctuation in major raw material prices and continued market expectations for future price increases, ternary cathode material quotes have not yet shown significant adjustments.

Demand side, performance continued to improve, with robust demand in the domestic EV market. Leading cathode material enterprises maintained high operating rates and prioritized the fulfillment of long-term contracts. Based on the current production schedule, this positive demand trend is expected to continue until year-end. In the small power and consumer electronics markets, demand performed well, driven by the traditional peak season for digital products in Q4. Additionally, the ongoing rise in cobalt prices prompted some LCO demand to shift towards ternary cathode materials, bringing some incremental demand to the market. Downstream expectations of rising raw material prices also prompted some advance purchasing of orders.

Although overall order performance was relatively positive, cathode material enterprises still faced significant cost pressure and market competition against the backdrop of tight raw material supply and continuously rising costs. In terms of material series structure, the market share of 6-series NCM is gradually increasing, and its proportion is expected to further expand next year; meanwhile, the proportion of 5-series materials may trend towards contraction due to their higher costs.