In August 2025, China's lithium cobalt oxide (LCO) production reached 11,080 tonnes, marking a month-on-month increase of 1.00% and a year-on-year growth of 15.42%. The period from August to September is the peak season for consumer electronics demand, with strong downstream demand for LCO. However, LCO producers continued to rely primarily on long-term supply agreements. Considering that the subsequent tightening supply of cobalt intermediates may boost cobalt prices, battery cell manufacturers made necessary purchases to replenish inventories during the month. In late August, leading battery cell manufacturers were also preparing to sign new long-term agreements, contributing to the increase in LCO production in August.
China's lithium cobalt oxide production is projected to reach 11,380 tonnes in September, reflecting a month-on-month rise of 2.71% and a year-on-year increase of 14.83%. September represents the seasonal peak in demand, with downstream battery cell manufacturers expected to engage in concentrated inventory replenishment and sign new long-term agreements. These factors are anticipated to drive further growth in LCO production for September.
Edited by Cassie Li, lixiangying@mysteel.com
