[SMM Analysis] Review of the Ternary Cathode Material Market in the Last Week Before Chinese New Year

This week, ternary cathode material prices maintained an upward trend, with the price increases of 6-series and 8-series materials being relatively more pronounced. The main reason is that nickel sulphate and lithium chemicals prices remained strong during the last week before the Chinese New Year. Additionally, some top-tier enterprises' restocking demand for raw materials remained significant, strengthening the cost support for ternary cathode materials.

In terms of production and supply from January to February, the production of ternary cathode materials declined overall due to the off-season period at the beginning of the year. Top-tier ternary cathode material enterprises maintained normal operations during the Chinese New Year holiday. Although demand-side orders pulled back, the reduction is expected to be relatively small. In total, the domestic production of ternary cathode materials in January is currently expected to decrease by about 5% MoM, with the decline being limited compared to previous years. In contrast, the operating rates of overseas ternary cathode material plants remained sluggish. On the demand side, the domestic top-tier battery enterprises' production schedule for ternary power battery cells also declined in January-February, but the reduction is similarly small. Currently, the total production of ternary battery cells in January is expected to decrease by about 7% MoM.