In September 2025, China's lithium cobalt oxide (LCO) production reached 11,380 tonnes, up 1.34% month-on-month and 14.83% year-on-year. September marked the peak season for consumer electronics demand, supporting steady downstream demand for LCO. Although actual supply remained primarily driven by long-term agreements, market expectations for tightening supply of cobalt intermediates intensified, thereby boosting cobalt price. Against this backdrop, downstream battery cell plants not only engaged in rigid inventory replenishment but top-tier ones also increased procurement to prepare for new long-term contracts, collectively driving the growth in LCO production in September.
In October, China LCO production is likely to reach 11,600 tonnes, increasing 1.93% MoM and 20.08% YoY. October remains within the "Golden September, Silver October" period, battery plants are expected to prepare for order placements for the mid-to-late fourth quarter and early next year to mitigate risks associated with potential further price increases. Hence, LCO output is anticipated to maintain growth in October.
Edited by Cassie Li, lixiangying@mysteel.com
