Nickel Sulfate
In January, China's nickel sulfate production was 238,000 tonnes, or 52,400 tonnes in Ni. content, marking a month-on-month increase of 15.5%. The production comprised 0% nickel briquette/powder, 56.63% MHP, 34.65% high-grade nickel matte, 7.20% secondary nickel, and 1.53% NPI by raw material. This includes approximately 12,900 tonnes of nickel sulfate used to produce nickel plate.
During January, the demand for nickel sulfate from the downstream ternary precursor sector increased significantly due to a push to fulfill export orders and to build inventory ahead of the Chinese New Year holiday in February. Meanwhile, high nickel prices encouraged downstream nickel plate producers to maintain active production. Furthermore, some nickel sulfate plants built pre-holiday stockpiles ahead of February, collectively driving the substantial growth in the production of nickel sulfate in January.
China's nickel sulfate production in February is forecasted at 43,200 tonnes in Ni. content, down 17.51% month-on-month. Entering February, the number of working days reduced due to the Chinese New Year holiday in China. With demand largely released in January, coupled with maintenance shutdowns or technical upgrades at some plants, nickel sulfate production is projected to decline noticeably in February.
MHP
According to Mysteel surveys of 9 sampled projects in Indonesia (one more than the previous month), the production of MHP in Indonesia reached 40,700 tonnes in Ni. content in January 2026. This represents a month-on-month increase of 2.99% and a year-on-year increase of 0.19%.
The estimated MHP production in Indonesia for February is 41,900 tonnes in Ni. content, indicating a month-on-month increase of 3.03% and a year-on-year increase of 18.40%.
Nickel Matte
According to Mysteel's survey of 15 sampled projects in Indonesia, the country's nickel matte production in January reached 41,500 tonnes in nickel content, an increase of 4.06% month-on-month and 31.05% year-on-year. This includes 35,400 tonnes of high-grade nickel matte and 6,100 tonnes of low-grade nickel matte (excluding portions already upgraded to high-grade nickel matte).
For February, Indonesia's nickel matte production is projected to reach 40,800 tonnes in nickel content, a decrease of 1.58% compared to January but a rise of 49.65% year-on-year. This includes 33,800 tonnes of high-grade nickel matte and 7,000 tonnes of low-grade nickel matte.
Cobalt Sulfate
In January 2026, China's cobalt sulfate production reached 17,808 tonnes, reflecting a month-on-month increase of 3.37% but a year-on-year decrease of 10.84%. The rise in production during January was driven by increased demand for cobalt from the ternary precursor sector, which saw higher output.
China's cobalt sulfate production in February 2026 is projected to be 15,364 tonnes, representing a month-on-month decline of 13.72% and a year-on-year drop of 15.62%. For February, the demand from downstream cobalt sulfate consumers is expected to remain sluggish. Smelters are already operating at historically low capacity utilization rates, compounded by the impact of the Chinese New Year holiday. Taking into account the production schedules of cobalt salts and ternary precursors, cobalt sulfate output in February is forecasted to experience a moderate decrease.
Cobalt Chloride
In January 2026, China's cobalt chloride production reached 12,741 tonnes, reflecting a month-on-month decrease of 7.67% and a year-on-year decline of 26.68%. The reduction in output during January was driven by weaker demand from downstream Co3O4 sector, which saw lower output. Additionally, some smelters lowered their operating rates due to shortages in raw material supply.
China's cobalt chloride production in February 2026 is projected to be 11,861 tonnes, representing a month-on-month decrease of 6.91% and a year-on-year drop of 30.97%. February falls within the demand off-season, and downstream Co3O4 sales have been sluggish, contributing to the slight decline in cobalt chloride output for the month.
Lithium Carbonate
According to Mysteel, China's lithium carbonate production in January 2026 was 96,200 tonnes, falling by 2.0% month-on-month. Although ramp-ups at some facilities and tolling production increased, the overall lithium carbonate production declined month-on-month, impacted by concentrated maintenance at spodumene-based production lines in mid-to-late January.
Looking ahead, China's lithium carbonate production for February is projected to reach 88,300 tonnes, indicating an 8.2% decrease month-on-month. The production in February is expected to be affected by the Chinese New Year holiday, maintenance on spodumene-based lines, and seasonal production cuts at salt lakes in northern China. Despite some lines maintaining high operating rates and continuing their ramp-ups, the overall production for the month is projected to follow a downward trend.
Lithium Hydroxide
China's lithium hydroxide production was 26,500 tonnes for January 2026, representing a month-on-month decrease of 8.0%. The monthly decline was primarily due to maintenance at some refineries in Sichuan, while the ramp-up progress of new capacity remained on track. Leading enterprises maintained high operating rates. Production via the causticization route was generally stable overall.
In February, the lithium hydroxide is estimated at 23,900 tonnes in China, indicating a month-on-month decrease of 9.8%. The production from hard rock is expected to continue declining from January's level due to maintenance during Chinese New Year holiday and fewer calendar days in February. Concurrently, the production schedules for ternary cathode plants are also projected to decrease, pointing to weak supply and demand. The production plans for causticization enterprises are expected to remain largely stable.
Ternary Precursor
According to survey using Mysteel's revised sample methodology, China's production of ternary precursors reached 98,800 tonnes in January 2026, reflecting a month-on-month increase of 13.05% and a year-on-year surge of 68.37%.
In January, most producers opted for concentrated production to build inventories for February. Additionally, production at some export-oriented enterprises saw significant expansion due to the gradual phase-out of export tax rebates, contributing to the substantial overall growth in ternary precursor output.
For February 2026, China's ternary precursor production is estimated at 88,000 tonnes, representing a month-on-month decrease of 10.89% but a year-on-year increase of 41.48%. The notable decline in production is attributed to the impact of the Chinese New Year holiday and the traditional off-season.
Ternary Cathode Material
According to Mysteel's survey, China's production of ternary cathode materials reached 85,500 tonnes in January 2026, reflecting a month-on-month increase of 3.49% and a year-on-year surge of 82.33%.
In January, some large cathode material plants built inventories in advance for the Chinese New Year holiday, while a few export-oriented producers ramped up the production in anticipation of an export rush, contributing to the overall growth in ternary cathode material output.
For February 2026, China's ternary cathode material production is projected to be 73,400 tonnes, representing a month-on-month decrease of 14.14% but a year-on-year rise of 49.69%. The decline is attributed to weak domestic downstream demand and the impact of the Chinese New Year holiday, with the additional factor that some production has been front-loaded in January, leading to a significant overall reduction in output for February.
Cobalt Powder
In January 2026, China's cobalt powder production reached 759 tonnes, representing a month-on-month decrease of 1.30% and a year-on-year decline of 0.78%. During the month, downstream sectors primarily focused on digesting existing inventory and adopted a cautious approach toward procurement. Additionally, the manufacturers lowered their operating rates with raw material supply increasingly tightening.
For February 2026, the cobalt powder production is projected to be 689 tonnes, indicating a month-on-month drop of 9.22% but a year-on-year increase of 1.03%. In February, production is expected to decline due to fewer working days amid the Chinese New Year holiday, limited improvement in downstream demand, and further tightening of raw material supply.
Electrolytic Cobalt
In January 2026, China's electrolytic cobalt production was 370 tonnes, representing a month-on-month decrease of 14.55% and a year-on-year decline of 92.71%. During January, persistently high domestic electrolytic cobalt inventories suppressed price momentum, while the profit remained in the negative. Coupled with tight raw material supply, smelters generally reduced or halted the production of electrolytic cobalt, leading to a continued decline in output for the month.
For February 2026, China's electrolytic cobalt production is projected to be approximately 340 tonnes, indicating a month-on-month drop of 8.11% and a year-on-year plunge of 93.67%. In February, issues such as persistently high domestic inventories and ongoing negative profit are expected to remain challenging, further exacerbated by fewer working days during the month due to Chinese New Year holiday. As a result, overall production is anticipated to continue declining.
Co3O4
In January 2026, China's Co3O4 output reached 8,580 tonnes, reflecting a month-on-month decline of 13.68% but a year-on-year increase of 15.01%. The slight decrease in production during January was attributed to the seasonal downturn in electronics demand, coupled with LCO battery cell manufacturers front-loading some of their demand to end-2025.
China's CO3O4 production in February 2026 is projected to be 7,610 tonnes, representing a month-on-month decrease of 11.31% and a year-on-year growth of 4.39%. In February, tight domestic cobalt raw material supply is expected to persist, with smelters prioritizing the fulfillment of long-term agreements. Additionally, as some producers plan to halt the production for maintenance during the Chinese New Year holiday. Therefore, the Co3O4 production is forecasted to decline month-on-month.
LMO
China's lithium manganese oxide (LMO) production totaled 8,500 tonnes in January, down 2.07% month-on-month.
LCO
According to Mysteel's survey, China's lithium cobalt oxide (LCO) production in January 2026 reached 10,990 tonnes, marking a month-on-month decrease of 6.43% but a year-on-year increase of 28.39%. January fell within the traditional demand off-season, and LCO producers mainly focused on maintaining stable deliveries.
China's LCO production in February 2026 is projected to be 9,000 tonnes, reflecting a month-on-month decline of 18.11% and a year-on-year growth of 19.52. The LCO output is expected to follow a moderate downward trend with supply slightly tapering in line with demand and February coinciding with the Chinese New Year holiday.
LFP
In January 2026, China's lithium iron phosphate (LFP) production reached 405,400 tonnes, reflecting a month-on-month decrease of 4.1%. While most enterprises maintained relatively high production levels during the month, overall operating rates declined due to factors such as maintenance shutdowns at some production lines and cost pressures, leading to a slight reduction in total output.
China's LFP production in February is expected to decrease to 383,200 tonnes, down 5.48% month-on-month. The primary factors contributing to this decline include the impact of the Chinese New Year holiday and adjustments to some producers' production lines. From an order perspective, overall market feedback remains positive, demonstrating a pattern of resilience despite the off-season.
Anode
According to Mysteel OilChem, China's anode material production reached 285,100 tonnes in January 2026, representing a year-on-year increase of 27.85% and a month-on-month rise of 7.42%. Strong order demand persisted in January, supported by export orders downstream and continued positive demand from the energy storage battery sector. Leading enterprises operated at full capacity, which drove a slight increase in the operating rates for anode material production.
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