This week, with no changes in sulphate prices, the significant drop in lithium carbonate prices on Monday led to varying degrees of cost reductions for 5-series and 6-series ternary cathode materials. Meanwhile, 8-series high-nickel ternary cathode materials saw a synchronized increase due to the steady rise in lithium hydroxide prices.
In December, domestic ternary cathode material production decreased by 6.5% MoM but was up 7.2% YoY. This month, the concentration among leading producers remained high, while production levels of small and medium-sized enterprises further declined. Additionally, adjustments in finished cathode material control by some downstream battery companies at year-end led to a decline in ternary cathode material orders this month. On the demand side, domestic production of ternary power battery cells in December also dropped by approximately 6% compared to November. Battery companies reduced their year-end production schedules due to inventory control and weakening expectations for a rush for installations. Looking ahead to the production schedule in January 2025, China's ternary cathode material production is expected to decrease by 4.5% MoM. The market concentration among leading producers is expected to increase further in January, with most manufacturers showing slight production declines, except for a few companies whose production is expected to rise slightly.
