Faltering battery demand led to a third straight month of drop in battery separator production

China's lithium battery separator output hit 1.259 billion square meters in November 2023, down 5% MoM but up 2% YoY.

Demand-side, the battery cell market is declining, led by energy storage, with a steady but falling trend in the EV market. Consequently, many smaller battery cell firms have cut their production plans, slashing upstream battery separator orders by over 20% in some instances. Top battery cell firms, even with stockpiled cells and separators, face falling orders. Near-term battery separator demand looks weak. SMM predicts China's December lithium battery separator production will hit 1.179 billion square meters, dropping 6% both MoM and YoY.