PCAM and CAM price review and forecast

Ternary precursor

In the week ending March 14, Series 5, 6, and 8 precursor prices rose slightly due to increasing raw material costs. Precursor firms raised their prices, but difficulty in passing on these increases kept transaction prices stable. Suppliers, affected by high nickel sulphate prices, are cautious with accepting orders and are aligning production with sales. Demand is supported by optimism in the nickel sulphate market and encouraging March vehicle sales, leading to active inquiries. However, downstream buyers are resistant to costly precursors, limiting the potential for substantial price increases in ternary precursors.

Ternary cathode material

In the week ending March 14, ternary cathode material prices rebounded due to increased nickel and lithium prices. Shorter lithium contracts and lower Q1 supplies from battery cell makers have led to higher spot market prices for lithium salts, raising cost concerns. Small and medium battery cell manufacturers are gradually adapting to these market conditions. March scheduled production show a significant increase in high-nickel materials and a recovery in low-nickel material output. Demand for EV battery cells is strong at the high end, with major battery cell makers driving increased demand for ternary materials, while smaller manufacturers maintain stable demand. Lithium price increases are expected to be limited, suggesting that ternary cathode material prices will likely stay stable.

LFP

In the week ending March 14, LFP prices increased slightly, influenced by higher lithium carbonate prices and cautious downstream buyers preferring long-term contracts. LFP producers are aligning production with sales, resulting in increased supply. Demand is rising in EV and energy storage sectors, but battery cell companies are cautious with purchases at higher prices, focusing on clearing inventory and necessary stock replenishment. The near-term forecast suggests a stable and slight increase in LFP prices.

LCO

In the week ending March 14, LCO prices increased slightly due to higher cobalt salt and climbing lithium prices. Some firms raised LCO prices due to rising costs, while major companies kept prices steady. The low and mid-end digital electronics battery market is slow, with limited acceptance of higher prices. LCO production increased postholiday in March. Battery cell manufacturers expect stable Q2 market demand due to no new popular model releases in the first half of the year. They are producing to match sales and purchasing LCO as needed, with future expectations indicating LCO prices may remain stable despite higher lithium prices.

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