China's November 2023 ternary cathode materials production was 55,867 mt, steady from October but down 16% YoY. January-November 2023 saw a total of 567,933 mt, down 6% YoY.
In the digital and power batteries markets, year-end order weakening leads to fierce price competition among top ternary material companies, squeezing out smaller producers. In the power battery market, there was stable demand from major domestic and some tier-two battery makers, with mid-nickel projects growing slightly despite a dip in high-nickel output. Some firms face low operating rates due to a sharp drop in overseas battery demand. Low-nickel and high-nickel materials’ shares are falling, while mid-nickel's share grows.
Entering December, demand in digital and power batteries continues to fall as some small domestic battery factories shut down, with only exports slightly stable. NEV orders are also declining. High-nickel production may slightly increase or stabilize for ternary cathode firms, especially those linked to leading and tier-two battery manufacturers targeting year-end boosts, mainly for overseas markets. However, mid- and low-nickel material production is significantly reduced, shifting the recent demand trend. China's December ternary cathode material production is estimated at 52,981 mt, down 5% MoM but stable YoY.
