SMM Data: China’s Ternary Cathode Precursor Output In August And Forecast For September

SHANGHAI, Sep 14 (SMM) – In August, the production of ternary cathode precursor in China was 81,918 mt, an increase of 4% MoM and a 2% increase YoY.
From January to August, the cumulative production of ternary cathode precursor in China reached 528,072 mt, with a 4% increase YoY.
In August, there was an overall increase in the driving force for ternary cathode precursor in China. The prices of nickel-cobalt raw materials remained low, leading to some companies building up their inventories. Leading battery manufacturers increased their self-supply of precursor materials, resulting in reduced outsourcing volume for some ternary cathode precursor companies. Additionally, the low-price strategy of some ternary cathode precursor companies proved effective, leading to an increase in downstream orders and a rise in production rates.
In September, both domestic and international demand for ternary cathode materials showed poor performance. Uncertainty in lithium prices led to cautious procurement in the downstream market and a pessimistic outlook. Leading domestic precursor manufacturers reduced their inventories, and high-nickel production decreased significantly. Overseas demand for ternary cathode materials continued to weaken, resulting in a noticeable decline in production for companies with a large export proportion of ternary cathode precursor. Furthermore, due to the expectation of the National Day holiday, some precursor material factories advanced their production scheduling to September. Overall, the production of ternary cathode precursor in China in September was 78,270 mt, representing a 4% decrease MoM and an 11% decrease YoY.