[SMM Analysis] Ternary Cathode Precursor Production in November Decreased 5.32% MoM

In November 2025, domestic ternary cathode precursor production pulled back, down 5.32% MoM and 10.2% YoY. The average industry operating rate dropped back slightly to 46.31%. By product structure, the share of 6-series precursors remained high at 46.93%, while the shares of other series were correspondingly squeezed, with the 5-series, 8-series, and 9-series accounting for 13.04%, 27.38%, and 10.29%, respectively.

Despite the impact of the NEV subsidy phase-out, overall demand for ternary materials remained high in Q4. Although November production decreased MoM after the October surge, it was still relatively high for the year, with some producers still in an inventory buildup phase. On the consumer market side, demand was strong in early November, with active cargo pick-up by downstream customers; however, the pace of shipments slowed down in the latter half of the month as raw material prices declined.

Looking ahead to December, demand is expected to pull back further as the traditional peak season ends. Approaching year-end, some producers are actively controlling inventory levels, and with expectations of further declines in raw material prices, producers are generally reluctant to increase stockpiling. Overall, the industry is expected to shift into a destocking phase in December, with production schedules projected to continue declining; current forecasts indicate a 7.81% MoM and 4.55% YoY drop in production.