[SMM Analysis] Ternary Cathode Material Market Update for the Last Week of December 2024

This week, with no changes in sulphate prices, the significant drop in lithium carbonate prices on Monday led to varying degrees of cost reductions for 5-series and 6-series ternary cathode materials. Meanwhile, 8-series high-nickel ternary cathode materials saw a synchronized increase due to the steady rise in lithium hydroxide prices.

In December, domestic ternary cathode material production decreased by 6.5% MoM but was up 7.2% YoY. This month, the concentration among leading producers remained high, while production levels of small and medium-sized enterprises further declined. Additionally, adjustments in finished cathode material control by some downstream battery companies at year-end led to a decline in ternary cathode material orders this month. On the demand side, domestic production of ternary power battery cells in December also dropped by approximately 6% compared to November. Battery companies reduced their year-end production schedules due to inventory control and weakening expectations for a rush for installations. Looking ahead to the production schedule in January 2025, China's ternary cathode material production is expected to decrease by 4.5% MoM. The market concentration among leading producers is expected to increase further in January, with most manufacturers showing slight production declines, except for a few companies whose production is expected to rise slightly.