[SMM Analysis] Top Ternary Cathode Players Keep Up Fast Production, Backed by Robust Chinese and European EV Market

This week, ternary cathode material prices rebounded slightly. On the raw material front, nickel sulfate prices continued to decline, cobalt sulfate and manganese sulfate held steady, while lithium carbonate and lithium hydroxide prices shifted to an upward trend.

In terms of transaction sentiment, as manufacturers had largely completed restocking when lithium salt prices were at low levels during the downward volatility over the past two weeks, there was no additional restocking demand following this week's price rebound, resulting in subdued transactions. Meanwhile, as the month just began, the market is mainly focused on executing existing orders.

On payables, there have been no significant changes recently in either the EV or consumer markets. While absolute prices of nickel sulfate and cobalt sulfate are declining, precursor producers remain firm on payables. However, cathode producers have very limited acceptance of payable increases, and with sufficient raw material inventories and no urgent purchasing needs, payables are expected to undergo a period of negotiation.

On the demand side, the EV market shows solid end orders in July, with both domestic and European auto markets continuing to improve, driving battery cell demand to remain at high levels. Leading ternary cathode producers are maintaining a rapid production pace. Demand in the consumer and e-mobility markets, however, remains subdued.