Nickel Sulfate
According to Mysteel, China's nickel sulfate production reached 206,100 tonnes in December 2025, or 45,400 tonnes in Ni. content, representing a month-on-month decrease of 0.77%. The production comprised 0% nickel briquette/powder, 53.16% MHP, 38.92% high-grade nickel matte, 9.10% secondary nickel, and 1.79% NPI by raw material.
In December, due to low nickel prices at the beginning of the month, primary nickel producers significantly reduced the production. Meanwhile, downstream ternary precursor manufacturers cut raw material purchases as demand entered a seasonal low and year-end inventory controls were implemented. These factors led to a certain degree of production reduction in the nickel sulfate sector, though the overall supply decline was limited due to the ramp-up of some newly added capacities.
Looking ahead, China's nickel sulfate production in January 2026 is projected to reach 47,600 tonnes in Ni. content, an increase of 5.04% month-on-month. This includes approximately 10,800 tonnes of nickel sulfate used to produce nickel plate. The nickel prices have risen significantly in January due to market concerns over tighter RKAB quotas in Indonesia, boosting demand for primary nickel and likely supporting an increase in nickel sulfate production.
MHP
According to Mysteel's survey of eight sampled projects in Indonesia, the production of MHP in Indonesia reached 39,500 tonnes in Ni. content in December 2025, a decrease of 1.54% month-on-month but an increase of 1.75% year-on-year. From January to December 2025, the cumulative production of Indonesia's MHP totaled 469,700 tonnes in Ni. content, up 40.53% year-on-year.
Looking ahead, Indonesia's MHP production is estimated at41,600 tonnes in Ni. content in January, up 5.34% MoM and 2.49% YoY.
Nickel Matte
According to Mysteel's survey of 15 sampled projects in Indonesia, Indonesia's nickel matte production was 36,700 tonnes in Ni. content in December, a decrease of 0.76% month-on-month but an increase of 27.89% year-on-year. This total consisted of 31,300 tonnes of high-grade nickel matte and 5,400 tonnes of low-grade nickel matte.
From January to December 2025, the cumulative nickel matte production in Indonesia was 332,800 tonnes in Ni. content, a decline of 4.87% year-on-year.
Looking ahead, Indonesia's nickel matte production for January 2026 is projected at 41,700 tonnes in Ni. content, up 13.76% MoM and 31.82% YoY. This includes 34,400 tonnes of high-grade nickel matte and 7,300 tonnes of low-grade nickel matte.
Cobalt Sulfate
In December 2025, China's cobalt sulfate production reached 17,228 tonnes, reflecting a month-on-month decrease of 2.67% and a year-on-year decline of 13.91%. In December, reduced production in the ternary precursor sector led to lower demand for cobalt, while the cost-effectiveness of converting electrolytic cobalt back into cobalt sulfate diminished. Amidst tight raw material supply, producers primarily maintained lower operating rates, contributing to the drop in cobalt sulfate output for the month.
For January 2026, China's cobalt sulfate production is predicted to be 17,012 tonnes, representing a month-on-month decline of 1.25% and a year-on-year decrease of 14.83%. In January, downstream demand for cobalt sulfate is expected to remain muted, while smelters are already operating at historically low capacity utilization rates. Based on the production scheduling of cobalt chemicals and ternary precursors, cobalt sulfate production is projected to experience a slight decline in January.
Cobalt Chloride
In December 2025, China's cobalt chloride production amounted to 13,800 tonnes, marking a month-on-month decrease of 6.47% and a year-on-year decline of 30.83%. During December, reduced output of downstream Co3O4 led to weakened demand for cobalt chloride. Additionally, some smelters lowered their operating rates due to tight raw material supply, resulting in an overall decline in cobalt chloride production for the month.
For January 2026, China's cobalt chloride production is projected to reach 14,407 tonnes, reflecting a drop of 2.79% MoM and a decrease of 17.09% YoY. While the market is in seasonal lull in January, some production plans for Co3O4 originally scheduled for February have been advanced to January, providing some support for cobalt chloride operating rates. As a result, cobalt chloride output in January is expected to experience only a slight decline.
Lithium Carbonate
China's lithium carbonate production totaled 98,200 tonnes, up 4.6% month-on-month. While a major lepidolite producer in Jiangxi reduced production due to raw material shortages, the resumption of operations at a spodumene-based producer after resolving feedstock issues contributed to the overall growth. Several new production lines commenced operations in central China, while most other producers maintained stable operations.
China's lithium carbonate production is estimated at 95,000 tonnes in January, a decrease of 3.2% compared to December. The delayed restart of CALT's Jianxiawo project has resulted in continued low operating rates for lepidolite production lines in Jiangxi, with a further declining trend observed in January. Some spodumene-based production lines are scheduled for maintenance in mid-to-late January, and lithium extraction enterprises at Qinghai's salt lakes have entered seasonal production reduction. Other production capacities remain stable, while the production schedule for recycled lithium has been lowered compared to December.
Lithium Hydroxide
According to Mysteel, China's lithium hydroxide production reached 28,400 tonnes in December, marking a month-on-month increase of 2.1%. The production in December remained largely stable compared to November, supported by steady orders from the ternary cathode material sector. Production gains were primarily driven by the continued ramp-up of new capacity at certain manufacturers, while other producers maintained high operating rates amid rising prices.
China's lithium hydroxide production is projected to be 28,600 tonnes in January, down 0.7% month-on-month. While new smelting lines still in the ramp-up phase will contribute to the main supply increment, a major producer in Sichuan is expected to reduce production due to scheduled year-end maintenance. The production scheduling plans of causticizing enterprises remain generally stable, and it is expected that the supply of lithium hydroxide will show a slight downward trend overall in January.
Ternary Precursor
China's ternary precursor production in December 2025 reached 87,400 tonnes, representing a month-on-month decrease of 3.21% and a year-on-year increase of 29.31%. The declined production in December was due to the seasonal demand pullback. While CATL continued to exhibit strong demand, other ternary precursor manufacturers experienced seasonal weakening in demand, leading to reduced output in December.
The ternary precursor production is estimated at 85,900 tonnes for January 2026, reflecting a decrease of 1.66% MoM and an increase of 89.15 YoY. With both domestic and export demand softening, ternary precursor production is expected to experience a slight decline.
Ternary Cathode Material
China's production of ternary cathode materials in December 2025 reached 82,600 tonnes, down 1.55% month-on-month but up 48.15% year-on-year. In December, the demand from CATL remained strong, while some other cathode plants maintained stable export demand due to favorable Tesla orders. The demand from other small and medium-sized ones was weak during the off-season, leading to a slight decline in overall production.
In January 2026, China's production of ternary cathode materials is projected to be 81,400 tonnes, a decrease of 1.39% MoM and an increase of 46.09% YoY. Demand outside CATL has begun to decline, and export demand is expected to soften, resulting in a slight reduction in total output.
Cobalt Powder
In December 2025, China's cobalt powder production reached 769 tonnes, marking a month-on-month decrease of 0.13% and a year-on-year decline of 14.93%. The market entered a seasonal demand trough in December, characterized by limited spot orders and tight raw material supply. Cobalt powder smelters focused primarily on fulfilling long-term agreements, leading to a slight decline in output, though overall fluctuations remained limited.
For January 2026, cobalt powder production is likely to reach 729 tonnes, reflecting a month-on-month drop of 5.20% and a year-on-year decrease of 4.71%. As the month coincides with the pre-China New Year holiday, downstream players are prioritizing inventory digestion and adopting a cautious approach toward procurement. Additionally, with raw material supply becoming increasingly tight, manufacturers have scaled back operating rates. Consequently, the cobalt powder output is expected to slightly reduce in January.
Electrolytic Cobalt
In December 2025, China's electrolytic cobalt production was 648 tonnes, representing a month-on-month increase of 109.03% and a year-on-year decrease of 88.15%. During the month, high domestic inventories of electrolytic cobalt suppressed price increases, while persistently negative margins for electrolytic cobalt production, coupled with tight raw material supply, led to widespread production cuts or shutdowns at smelters. However, some producers resumed partial production of electrolytic cobalt to fulfill previous orders, resulting in an increase in supply in December.
For January 2026, China's electrolytic cobalt production is projected to be approximately 434 tonnes, reflecting declines of 32.87% MoM and 91.43% YoY respectively. In January, persistently high inventory levels and lackluster downstream demand are expected to result in slow inventory digestion. Profitability recovery is anticipated to take time, compounded by gradually tightening raw material supply. With some market plyers having completed previous orders, electrolytic cobalt supply in January is forecasted to experience a slight decrease.
Co3O4
In December 2025, China's production of Co3O4 reached 9,940 tonnes, representing a month-on-month decrease of 2.07% and a year-on-year decline of 5.15%. December traditionally marks soft demand for 3C electronics. However, the advancing of some demand from January 2026 by LCO battery cell manufacturers helped mitigate a significant drop in Co3O4 production for the month.
For January 2026, China's Co3O4 production is likely to reach 10,130 tonnes, indicating increases of 1.91% MoM and 35.79% YoY respectively. In January, domestic cobalt raw material supply remains tight, prompting smelters to prioritize fulfilling long-term agreement deliveries. As some producers plan maintenance shutdowns during the Chinese New Year holiday in February, a portion of their production schedules has been advanced to January. Consequently, Co3O4 output is expected to experience a slight month-on-month increase, with overall changes remaining limited.
LMO
China's lithium manganese oxide (LMO) production totaled 8,680 tonnes in December, down 0.9% month-on-month.
LCO
In December 2025, China's lithium cobalt oxide (LCO) production reached 11,745 tonnes, marking a month-on-month decrease of 0.47% but a year-on-year increase of 14.59%. In 2025, demand for LCO remained robust, with cumulative growth reaching 21.89% compared to the same period last year. Although December typically features a seasonal contraction in demand, the pull-forward of some demand originally expected in the following year helped prevent a significant decline in LCO production for the month.
Looking ahead to January 2026, China's LCO production is likely to reach 11,645 tonnes, representing a slight decrease of 0.85% MoM but a substantial increase of 36.04% YoY. As January remains within the off-peak season, LCO manufacturers are expected to prioritize steady order fulfillment, with supply gradually adjusting downward in response to weaker demand. Consequently, LCO production is projected to follow a modest downward trend during the month.
LFP
In December 2025, China's lithium iron phosphate (LFP) production reached 422,700 tonnes, up 3.65% MoM. Strong demand continued through the month, with most manufacturers maintaining full production. Although some companies reduced production due to production line incidents or scheduled maintenance, the overall LFP production continued to rise, supported by the steady ramp-up of new capacity in Hubei province.
China's LFP production is projected to reach 376,200 tonnes in January 2026, a decrease of 11.00% compared to the previous month. As production lines have been operating at overloaded levels, some manufacturers will implement planned production reductions and maintenance in January to ensure safe, stable, and efficient operations.
Anode
In December 2025, China's anode material production reached 264,500 tonnes, up 49.77% year-on-year and 5.07% month-on-month. The steady demand for anode material orders persisted during the month, driven by continued strong demand from the energy storage battery sector, which contributed to a slight increase in operating rates for anode material production.
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