China's Ternary cathode material Output In September And Forecast For October

SHANGHAI, Oct 13 (SMM) –

In September 2023, the production of ternary cathode material in China was 55,397 mt, down 1% MoM and 18% YoY. From January to September 2023, the cumulative production was 456,004 mt, down 2% YoY.

In terms of demand, the overall domestic power battery market remained stable, with a certain decline in demand for high-nickel ternary cathode materials, and a slight increase in demand for medium and low nickel ternary cathode materials. Due to poor sales of cars powered by high-nickel batteries in overseas markets, ternary cathode material companies have reduced their production levels. On the digital front, downstream battery cell factories have digested some inventory, but due to sporadic terminal orders and a continuous decrease in lithium prices, downstream purchases of cathode materials remained on an as-needed basis. The digital market remained stable and has not shown significant improvement.

After entering October, the demand for high-nickel ternary cathode materials from domestic and overseas battery factories continued to weaken, resulting in further production cuts by leading ternary cathode material enterprises. In addition, some battery cell factories had excess inventory, and thus prioritized clearing the stock in October, resulting in a decrease in the production of medium and low nickel materials. In October 2023, the production of ternary cathode material in China is projected to be 52,437 mt, down 5% MoM and 25% YoY.