Ternary Cathode Materials Extended Sharp Declines In April, But Likely To Rebound In May On Rising Costs

SHANGHAI, May 15 (SMM) - The prices of ternary cathode materials extended sharp declines in April. Its monthly average price stood at 181,000 yuan/mt, a drop of 21% month-on-month and 51% year-on-year. The slump in lithium prices significantly lowered the production costs of ternary cathode materials. Demand from the NEV market remained weak, while demand from electronics market rose only mildly. Inquiries and transactions in the spot market were bleak. Some companies lowered offers sharply in order to win orders. However, ternary cathode material producers stopped cutting offers and even raised quotations after lithium salt prices bottomed out at the end of April. Battery cell manufacturers stocked up in small quantities after lithium salt prices rallied, lifting ternary cathode material prices slightly.

It is expected that ternary cathode material prices will go up in May, driven by rising costs.