Nickel Sulfate
In March, China's nickel sulfate production reached 262,200 tonnes, or 57,700 tonnes in Ni. content (based on a revised sample of 60 companies), up 31.41% month-on-month. The production comprised 0% nickel briquette/powder, 56.35% MHP, 35.24% high-grade nickel matte, 7.02% secondary nickel, and 1.39% NPI by raw material. This includes approximately 13,700 tonnes of nickel sulfate used to produce nickel plate.
The sharp production increase in March was primarily driven by the resumption of production at ternary precursor plants post Chinese New Year holiday, which boosted demand for nickel sulfate. Additionally, the widening price spread between nickel sulfate and refined nickel improved profit margins for nickel sulfate producers, raising their operating rates. The restart of plants that had undergone maintenance earlier, along with the gradual ramp-up of new capacity, further lifted the overall production.
For April, nickel sulfate production is expected to reach approximately 55,700 tonnes in Ni content, down 3.37% month-on-month. Following the post-Chines New Year holiday and post-maintenance recovery period typically seen in March, the production of nickel sulfate is expected to slightly contract in April.
MHP
According to Mysteel survey of nine sampled projects in Indonesia, the production of MHP reached 32,500 tonnes in Ni. content in March, down 16.56% month-on-month and 14.26% year-on-year. In the first quarter of 2026, the cumulative production of MHP stood at 112,200 tonnes in Ni content, a decrease of 1.57% compared to the same period last year.
Looking ahead to April, Indonesia's MHP production is estimated at 38,000 tonnes in Ni content, up 16.92% month-on-month and 21.45% year-on-year.
Nickel Matte
According to the survey of 15 sampled projects in Indonesia by Mysteel, Indonesia's nickel matte reached 40,100 tonnes in Ni. content in March, down 1.89% month-on-month but up 81.68% year-on-year. This included 30,500 tonnes of high-grade nickel matte and 9,500 tonnes of low-grade nickel matte.
In the first quarter of 2026, the cumulative nickel matte production stood at 122,300 tonnes in Ni. content, an increase of 51.13% compared to the same period last year.
For April, Indonesia's nickel matte production is estimated at 39,800 tonnes in Ni. content, down 0.63% month-on-month but up 130.72% year-on-year. This includes 32,900 tonnes of high-grade nickel matte and 6,900 tonnes of low-grade nickel matte.
Cobalt Sulfate
In March 2026, China's cobalt sulfate production reached 16,417 tonnes, down 12.05% month-on-month and 29.47% year-on-year. In March, a shortage of raw materials for cobalt sulfate in China, coupled with weakening demand from ternary precursor producers and Co3O4 producers, led to a decline in cobalt sulfate output among domestic producers.
In April 2026, China's cobalt sulfate production is expected to reach 16,499 tonnes, up 0.5% month-on-month but down 25.39% year-on-year. In April, downstream demand for cobalt sulfate is expected to remain soft. With smelters' operating rates already at historical lows, cobalt sulfate production is expected to remain stable with a slight increase in April.
Cobalt Chloride
In March 2026, China's cobalt chloride production reached 10,130 tonnes, up 24.74% month-on-month but down 48.25% year-on-year. In March, downstream Co3O4 production was relatively slow, reducing demand for cobalt chloride. Some cobalt chloride smelters reduced operating rates due to raw material shortages. And the monthly increase was due to a low base in February when production was slow during Chinese New Year holiday, and the March production was below that in February.
In April 2026, China's cobalt chloride production is expected to be 10,252 tonnes, up 1.2% month-on-month but down 43.65% year-on-year. In April, downstream Co3O4 shipments continue to face headwinds, but some producers have received new orders. As a result, cobalt chloride output is expected to see a slight increase in April.
Lithium Carbonate
China's lithium carbonate production reached 104,800 tonnes in March, up 27.1% from the previous month. In March, utilization rates at spodumene-based production lines in Sichuan, Jiangxi, and Xinjiang rose significantly, while toll producers largely maintained high operating rates driven by ample orders. The lepidolite-based production line maintained a stable operating rate due to the scarcity of lithium ore sources.
Looking ahead, China's lithium carbonate production is expected to reach 106,000 tonnes in April, up 1.3% month-on-month. Lithium carbonate production in Jiangxi is expected to remain relatively stable. Most producers in Sichuan are maintaining high operating rates, though some are undergoing routine maintenance rotations, which may result in reduced production by the end of April. As the weather warms up in the Qinghai, the production of lithium carbonate is also expected to increase slightly.
Lithium Hydroxide
In March 2026, China's lithium hydroxide production reached 29,900 tonnes, a month-on-month increase of 29.1%. The sharp rebound was largely seasonal, as producers ramped up operating rates post Chinese New Year holiday.
In April 2026, China's lithium hydroxide production is scheduled at 29,600 tons according to the survey, a modest month-on-month decrease of 1.2%. Most smelters are expected to keep output stable, though a few may see slight declines due to weaker downstream ternary precursor production and softer raw material demand.
Ternary Precursor
China's production of ternary precursors reached 97,600 tonnes in March 2026, representing a month-on-month increase of 22.47% and a year-on-year increase of 32.72%.
This significant month-on-month growth was driven by several factors. On the one hand, rising export orders from overseas markets led to a notable increase in demand for ternary precursors. On the other hand, mitigated risks related to production costs and inventory impairment losses encouraged producers to increase their operating rates. Furthermore, after completing routine maintenance in February, some producers resumed the production intensively in March, with capacity ramp-ups being realized, collectively contributing to the pronounced month-on-month increase in ternary precursor output in March 2026.
The ternary precursors production is estimated at 89,000 tonnes in April 2026, down 8.82% month-on-month but up 26.8% year-on-year. In April, both domestic and overseas demand are expected to decline, leading to a reduction in ternary precursor production.
Ternary Cathode Material
China's production of NCM cathode materials reached 83,600 tonnes in March 2026, representing a month-on-month increase of 21.06% and a year-on-year increase of 36.22%.
In March 2026, amid expectations of adjustments in overseas subsidy policies and tariff changes, producers accelerated the delivery of export orders, while actual end-user consumption in the domestic market did not show a corresponding significant increase. Due to the Chinese New Year holiday and annual routine maintenance, some NCM cathode and precursor producers suspended or reduced production line operations in February. Entering March, as maintenance work was completed and workers returned to their posts, the producers resumed the production intensively, with capacity utilization rates quickly rebounding from the low point in February to normal levels, resulting in a notable month-on-month increase.
China's production of NCM cathode materials for ternary lithium-ion batteries in April 2026 is estimated to be 82,200 tonnes, down 1.66% MoM but up 31.7% YoY.
Cobalt Powder
In March 2026, China's cobalt powder production reached 815 tonnes, up 20.56% month-on-month and 3.56% year-on-year. The monthly increase was attributed to the increase in working days, post-holiday production resumption leading to supply-side recovery, and cost improvements. Although overall end-user demand remained lackluster, structural support from the high-end manufacturing sector helped sustain the production.
In April 2026, China's cobalt powder production is expected to be 705 tonnes, down 13.5% MoM and 13.5% YoY. Market players are generally cautious, with producers largely awaiting demand for inventory building before the Labor Day holiday while also waiting for further clarity on cobalt raw material arrival schedules. Their willingness to proactively expand production remains weak.
Electrolytic Cobalt
In March 2026, China's electrolytic cobalt production reached approximately 410 tonnes, representing a month-on-month increase of 57.69% and a year-on-year decrease of 90.85%. The increase in working days in March compared to the previous month made a positive contribution to production. However, under the dual constraints of raw material shortages and negative profit margins, the room for production recovery remained limited.
In April 2026, China's electrolytic cobalt production is expected to be approximately 370 tonnes, down 9.76% month-on-month and 89.82% year-on-year. In April, the production is expected to decline modestly under the combined effects of narrowing profit margins, weak downstream demand, short-term supply disruptions, and weakening cost support.
Co3O4
In March 2026, China's Co3O4 production reached 8,175 tonnes, up 6.58% month-on-month but down 12.99% year-on-year. With the fact that LCO battery cell manufacturers had pulled forward part of their demand, Co3O4 production in March declined compared to January 2026, and the monthly increase was due to a low base in February.
In April 2026, China's Co3O4 production is expected to be 8,060 tonnes, down 1.41% month-on-month and 14.16% year-on-year. In April, as downstream LCO shipments continue to face headwinds and demand from the battery cell side has been pulled forward, the Co3O4 producers are maintaining production to fulfill long-term agreement deliveries. Consequently, the production is expected to continue decreasing in April.
LMO
China's lithium manganese oxide (LMO) production totaled 9,000 tonnes in Mar, up 9.62% month-on-month.
LCO
According to Mysteel's survey, China's lithium cobalt oxide (LCO) production in March 2026 reached 9,370 tonnes, representing a month-on-month increase of 55.91% but a year-on-year decrease of 4%. Despite a seasonal monthly rebound, LCO producers faced poor shipment conditions as battery cell manufacturers frontloaded their demand. As a result, LCO production in March declined compared to January 2026.
In April 2026, China's LCO production is expected to be 9,110 tonnes, down 13.16% MoM and 2.77% YoY. Due to the pull-forward of demand from downstream battery cell manufacturers, purchasing activity has been weak, with most market participants adopting a wait-and-see approach. Production remains committed to long-term agreement deliveries. Consequently, LCO production is expected to decline in April compared to March.
LFP
China's lithium iron phosphate (LFP) production reached 448,600 tonnes in March, an increase of 15.92% compared to the previous month. In March, most manufacturers operated at full capacity, with facilities in Hubei and Sichuan steadily ramping up production. Some producers experienced reduced production due to maintenance or technological upgrades.
For April, China's LFP production is expected to rise to 466,700 tonnes, up 4.03% month-on-month. Downstream demand remains stable, and new capacity additions at facilities in Hubei, Gansu, and other regions are expected to drive a modest increase in overall production schedules.
Anode
In March, China's anode material production reached 305,700 tonnes, an increase of 2.96% compared to the previous month. The sector showed an overall recovery during the month. Although some leading manufacturers experienced lower operating rates due to reduced orders for EV batteries, most producers posted stable or rising production. Additionally, the higher number of production days in March compared to February contributed to the sequential growth.
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