[SMM Analysis] Ternary Cathode Production Schedule May Continue to Decline

This week, ternary cathode material prices remained weak. Cost side, nickel sulphate prices stayed in the doldrums, cobalt sulphate prices stabilized after a sharp drop at the start of the week, and lithium carbonate and lithium hydroxide prices, after briefly stabilizing early in the week, plunged sharply again, driving ternary cathode material prices to continue falling. On discounts, since October, amid weak purchasing appetite and a sustained drop in raw material prices, discounts on nickel and cobalt salts settled between cathode plants and battery cell manufacturers generally declined.

Demand side, there were no major changes in recent orders; the EV market continued to see weak demand, producers continued destocking, the production pace slowed down, and purchasing appetite for raw materials was also weak. In the consumer market, amid weak end-user demand for consumer electronics and a sustained drop in raw material prices, transactions were likewise sluggish, with battery cell manufacturers maintaining just-in-time procurement and cautiously staying on the sidelines.

Production schedule, end-use demand in China’s EV market fell short of expectations, orders on the battery cell side declined, and cathode orders also fell further accordingly; production of ternary cathodes in China was expected to be flat MoM in October versus September, and the November production schedule was expected to decline further markedly.