[SMM Analysis] Review of Electrolyte Production Changes in H1 2024

In the past six months, the total output of electrolyte reached 558,390 mt, up 15.5% YoY compared to 483,380 mt in H1 2023.

The electrolyte market exhibited distinct phase characteristics. Data shows that after the Chinese New Year holiday, downstream demand for electrolyte gradually recovered. Due to the rising prices of LiPF6, electrolyte prices saw a slight increase. This prompted downstream producers to ramp up their procurement and stockpiling of electrolyte, driving rapid production growth from February to May, reaching a phase peak.

However, with the sharp decline in lithium carbonate prices and the fallback in end-user demand, downstream producers reduced their procurement efforts. Coupled with the digestion of previous inventories, electrolyte production saw a certain degree of decline in June.

Overall, the future price trend of electrolyte will depend more on the market and prices of upstream suppliers and changes in downstream application markets. Closely monitoring market changes, timely adjusting production and inventory strategies, and enhancing operational flexibility and risk resistance is currently necessary for companies.