China's production of ternary precursor (NCM precursor) materials stood at 97,500 tonnes in April 2026, down 0.26% month-on-month but up 38.99% year-on-year.
The decline in ternary precursor production in both April and May 2026 is the result of multiple overlapping and reinforcing factors. First, there was a seasonal demand lull in the domestic market in April, where purchasing and sales activity was already weak, while the removal of export tax rebates became the largest marginal variable. Effective April 1, 2026, the 13% export tax rebate on ternary precursors was officially eliminated, prompting producers to front-load shipments in March, which led to a surge in exports of 120.3% MoM. This significant pull-forward of demand inevitably led to a decline in export orders in April, with production intensity among lower-tier players falling across the board. Second, industry profitability continues to deteriorate, leaving companies with little incentive to actively ramp up production.
In May 2026, China's ternary precursor production is estimated at 96,000 tonnes, down 1.49% MoM but up 48.91% YoY.
Edited by Cassie Li, lixiangying@mysteel.com
