In November 2024, China's ternary cathode precursor production increased by 5% MoM and 10% YoY. On the supply side, the increase in precursor production mainly came from some top-tier enterprises, whose production slightly exceeded expectations due to the recovery in material market demand. The production of some non-top-tier ternary cathode precursor enterprises remained basically the same as the previous month. On the demand side, downstream ternary battery cell manufacturers increased their production schedules due to the year-end rush for installations, leading to increased demand for materials, with year-end performance exceeding expectations. Material manufacturers increased production in line with good orders, up about 4% MoM.
Looking ahead to December, considering the advance demand for some orders before the Chinese New Year, the production schedules of material manufacturers have increased, and ternary cathode precursor production is expected to increase by 1% MoM and 13% YoY.
