[SMM Analysis] Will Ternary Cathode Material Production Recover in July? What Are the Future Trends of Ternary Cathode Materials?

Last week, ternary cathode material prices declined.

Cost side, nickel, cobalt, and lithium prices all fell, leading to a decrease in cathode material costs and market transaction prices.

Supply side, July scheduled production of cathode material manufacturers is expected to see a slight recovery. Leading medium and high-nickel cathode material manufacturers show improved production schedules, while second and third-tier manufacturers' scheduled production remains largely stable or weakens. The market concentration may further increase.

Demand side, NEV sales for June are still expected to rise, with nearly 10% YoY growth in the first three weeks, driven by mid-year sales rush from car manufacturers. From the battery cell end, June scheduled production of battery cells declined, weakening demand for ternary cathode materials. Battery cell producers mainly consumed inventory. However, leading domestic battery cell manufacturers are expected to show improved purchasing demand for cathode materials in July.

Looking ahead, nickel, cobalt, and lithium prices are still in a downward trend, and ternary cathode material prices are expected to run weak.