Nickel Sulfate
China's nickel sulfate production stood at 206,000 tonnes in August, or 45,300 tonnes in Ni. content, up 6.37% month on month (MoM) according to Mysteel survey. The production comprised 0% nickel briquette/powder, 52.83% MHP, 39.16% high-grade nickel matte, 6.14% secondary nickel, and 1.88% NPI by raw material.
In August, a significant increase in ternary precursor production drove up the demand for nickel sulfate. Coupled with ongoing growth in nickel plate production, integrated producers saw a marked rise in nickel sulfate production. However, poor profitability for nickel sulfate producers relying on external raw materials and technical upgrades at some independent plants led to tight spot supply. This drove a noticeable increase in nickel sulfate prices.
China's nickel sulfate production is forecast at 47,100 tonnes in September, representing a month-on-month increase of 3.87%. This includes 19,200 tonnes of nickel sulfate will be used to produce nickel plate. With MHP and high-grade nickel matte producers extending to the downstream sectors, nickel intermediate products are increasingly being used in-house by integrated enterprises, resulting in limited market availability. Therefore, with the continued rise in payables for these intermediates, the prices of nickel sulfate are likely to stay resilient in September and October.
MHP
Indonesia's MHP production reached 42,900 tonnes in Ni. content in August, up 6.29% MoM and up 54.45% YoY, according to Mysteel's survey of eight sampled projects in Indonesia.
From January to August, the cumulative production of MHP in Indonesia reached 305,500 tonnes in Ni. content, an increase of 58.76% year-on-year. It is expected that Indonesia's MHP production will down 0.83% MoM to 42,500 tonnes in Ni. content in September.
Nickel Matte
Indonesia's nickel matte production reached 28,800 tonnes in Ni. content in August, up 14.75% MoM, according to Mysteel's survey of 15 sampled projects in Indonesia. This includes 20,300 tonnes of high-grade nickel matte and 8,500 tonnes of low-grade nickel matte.
From January to August, Indonesia's nickel matte production totaled 193,300 tonnes in Ni. content, down 15.25% compared to the previous year. In September, Indonesia's nickel matte production is projected at 27,600 tonnes, down 4.26% MoM and 11.34% YoY.
Cobalt Sulfate
In August 2025, China's cobalt sulfate production hit 12,174 tonnes, a decrease of 7.04% month-on-month and 38.70% year-on-year. Although downstream ternary precursor output increased in August, overall cobalt demand from the ternary sector remained subdued due to LFP and high-nickel ternary materials squeezing the demand. Market procurement was primarily driven by essential needs. Additionally, profitability in electrolytic cobalt has not yet recovered, and the industry continued to see production cuts, leading to weak demand for cobalt sulfate. Coupled with shutdowns or maintenance at some smelters, cobalt sulfate production declined in August.
In September, China's cobalt sulfate production is projected to be 12,095 tonnes, down 0.65% MoM and 38.70% YoY. Cobalt sulfate production is expected to continue its downward trend in September. The demand for cobalt from the ternary sector has not shown significant improvement, electrolytic cobalt inventories remain high with slow destocking, and smelters are maintaining production reduction strategies, further dampening demand for cobalt sulfate. Although some smelters undergoing maintenance are gradually resuming operations, bringing a modest increase, most cobalt sulfate plants continue to operate at low rates. Overall, cobalt sulfate production in September is anticipated to stabilize with a slight decrease compared to the previous month.
Cobalt Chloride
In August 2025, China's cobalt chloride production reached 15,516 tonnes, representing a month-on-month decrease of 4.07% and a year-on-year decline of 34.73%. In August, downstream demand for Co3O4 remained stable. However, Co3O4 producers using the sulfate process accounted for a large proportion and electrolytic cobalt producers continued to reduce the production due to persistently low profitability. Therefore, the overall market demand for cobalt chloride decreased. Additionally, smelters faced tight raw material supply and sustained high costs, leading to some cobalt salt smelters cutting or halting the production. These factors contributed to the month-on-month decline in cobalt chloride production.
China's cobalt chloride production in September is projected to hit 15,714 tonnes, reflecting an increase of 1.28% MoM but a decrease of 28.68% YoY. In September, downstream demand is expected to remain largely unchanged. However, as some cobalt salt smelters resume operations after completing maintenance, overall market supply is anticipated to improve slightly.
Lithium Carbonate
China's lithium carbonate production totaled 82,790 tonnes in August, up 8.1% month-on-month (MoM), according to Mysteel. In August, large-scale smelters in Jiangxi continued to ramp up production, but operating rates declined at several other smelters. The commissioning of the second phase of a lithium project in Sichuan provided a significant production increase, supplemented by a minor boost from production resumptions at some other smelters. The production in Qinghai remained stable.
Additionally, the operating rates of processing plants relying on outsourced feedstock rose alongside growing order volumes. In the recycling sector, leading manufacturers reported stable orders and high production enthusiasm. Overall, the release of new capacity and production restorations contributed to a larger month-on-month increase in lithium carbonate production in August.
It is expected that China's lithium carbonate production will rise 3.3% MoM at 85,400 tonnes in September. Large integrated smelters in Jiangxi are gradually reducing the production. Conversely, plants processing externally sourced ore are increasing their operating rates due to higher tolling orders, while enterprises with captive mines maintain stable production. Lithium plants in Sichuan are maintaining high operating rates, with production expected to increase as overseas ore arrives for some producers. Qinghai's production remains steady, and tolling processors also operated at high rates. In the recycling sector, leading manufacturers report stable orders and consistent output.
Lithium Hydroxide
China's lithium hydroxide production totaled 20,100 tonnes in August, down 5.5% month-on-month. The demand for ternary precursors slightly picked up in August, but the growth rate was relatively low. Orders were concentrated among leading large-sized smelters. Mainstream producers maintained low operating rates for lithium hydroxide production, with some shifting production towards lithium carbonate. Additionally, the production was impacted by suspensions for maintenance and technical upgrades at some plants. Consequently, the overall lithium hydroxide production declined in August.
China's lithium hydroxide production will likely rise 14.4% MoM at 23,000 tonnes in September. This rise is attributed to the gradual resumption of operations at plants that underwent maintenance earlier, increased production scheduling based on sales at some manufacturers, and the ramp-up of new production capacity.
Ternary Precursor
China's production of ternary precursors in August reached 76,200 tonnes, reflecting a month-on-month increase of 18.24% and a year-on-year increase of 6.32%. With the arrival of the traditional peak season in August, market demand was robust, primarily driven by strong demand from the CATL supply chain, coupled with better orders for certain 3C power bank products, leading to a significant rise in the overall production.
The ternary precursors production in September is estimated at 76,800 tonnes, moving up 0.75% MoM and 8.02% YoY.
Ternary Cathode Material
In August 2025, China's production of ternary cathode materials reached 69,600 tonnes, marking a month-on-month increase of 16.33% and a year-on-year increase of 16.33%. August, being in the traditional peak season, saw strong downstream demand, primarily driven by sustained growth in demand from the CATL supply chain. Additionally, demand for consumer digital products increased due to mandatory national regulations promoting upgrades and replacements, leading to a significant rise in the overall production.
In September, China's production of ternary cathode materials is expected to reach 70,300 tonnes, reflecting increases of 1.01% MoM and 21.08% YoY.
Cobalt Powder
In August, China's cobalt powder production reached 751 tonnes, representing a month-on-month decrease of 0.79% and a year-on-year decline of 1.18%. In August, orders from the traditional downstream hard-alloy industry remained stable. Top-tier enterprises maintained steady supply after signing long-term agreements, and smelters remained stable operating rates, resulting in only minor fluctuations in overall production. The primary reasons for this slight decline were tight raw material supply and persistently high market prices.
China's cobalt powder production is projected to be 745 tonnes in September, reflecting a decrease of 0.80% MoM and a drop of 0.13% YoY. In September, downstream players are expected to focus mainly on inventory digestion, with procurement driven primarily by essential needs and market players holding a cautious attitude. Coupled with high raw material prices and tight supply, smelters face mounting production costs and procurement pressures. As a result, cobalt powder production in September is anticipated to remain stable with a slight decrease, and the producers primarily focus on fulfilling previous orders.
Electrolytic Cobalt
In August 2025, China's electrolytic cobalt production reached 1,866 tonnes, a decrease of 17.43% month-on-month and 59.99% year-on-year. In August, overseas markets were in the summer holiday, while domestic downstream demand was subdued. High inventories of electrolytic cobalt continued to suppress price increases, while spot inventories of cobalt intermediates were further drawn down, driving sustained price rises. With electrolytic cobalt margins in negative territory, although some smelters maintained relatively high operating rates, the majority continued production cut strategies, leading to reduced electrolytic cobalt supply in August.
China's electrolytic cobalt production in September is projected to be around 1,766 tonnes. Domestic electrolytic cobalt inventories may remain relatively high. With no significant increase in actual demand, it will be difficult to reduce stockpiles in the short term. Electrolytic cobalt prices are only supported by raw material costs, while profitability remains negative. It is expected that electrolytic cobalt smelters will continue production reduction strategies in September.
Co3O4
In August 2025, China's Co3O4 production stood at 9,810 tonnes, marking a month-on-month increase of 15.01% and a year-on-year growth of 2.51%. During the month, Co3O4 producers primarily focused on fulfilling tolling and long-term orders. With the traditional peak season for consumer electronics approaching, downstream demand improved, and the major industry players raised their operating rates. This, in turn, drove an overall rise in market supply, resulting in the observed month-on-month growth in Co3O4 production.
China's Co3O4 production in September 2025 is estimated at 9,850 tonnes, reflecting a month-on-month increase of 0.41% and a year-on-year rise of 12.31%. In September, the supply of cobalt intermediates is expected to remain tight, and smelters will continue to prioritize the fulfillment of long-term orders. Given that the consumer electronics sector is in its peak season, small and medium-sized manufacturers are also following the lead of top-tier ones in raising their operating rates. As a result, Co3O4 production is anticipated to show further growth.
LMO
China's lithium manganese oxide (LMO) production totaled 8,490 tonnes in August, down 1.28% month-on-month.
LCO
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, featuring strong downstream demand for LCO. However, LCO producers continued to make shipment via long-term agreements. Considering that the subsequent tightening supply of cobalt intermediates may boost cobalt prices, battery cell manufacturers have 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 LCO production is projected to rise to 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.
Iron Phosphate
China's iron phosphate production reached 256,200 tonnes in August, up 2.6% month-on-month (MoM). Continued recovery in downstream demand and expectations for the traditional peak season in September and October bolstered market confidence, and the overall production of iron phosphate remained stable in August. Integrated producers maintained high operating rates. While third-party sellers continued working through inventory accumulated earlier, most enterprises prioritized destocking. Smaller-capacity producers largely maintained full production.
China's iron phosphate production is forecast to reach 264,600 tonnes in September, up 3% month-on-month. Leading enterprises are expected to continue raising production through September, with new market capacity still steadily coming online.
LFP
China's lithium iron phosphate (LFP) production was up 6.57% MoM at 318,800 tonnes in August. Driven by rising lithium carbonate prices and downstream battery cell companies actively building inventory for the traditional high season in September and October, LFP manufacturers experienced a significant uptick in orders starting from mid-to-late August. Orders for energy storage applications also increased substantially at some firms.
China's LFP production is forecast to rise further to 333,500 tonnes in September, up 4.63% MoM. During the traditional peak season in September, industry demand remain strong. Orders for energy storage maintain a robust momentum. Leading enterprises are basically operating at full capacity, while orders for second - and third-tier enterprises increase significantly.
Anode
China's anode material production totaled 223,500 tonnes in August, rising 3.19% month-on-month and 63.5% year-on-year. This growth was driven by anode material producers maintaining high operating rates throughout the month. Manufacturers also increased production based on orders.
