China's lithium cobalt oxide (LCO) production reached 7,570 tonnes in April 2026, down 19.21% month-on-month and 27.84% year-on-year. Due to persistently weak demand from battery cell manufacturers, LCO producers faced poor sales, limited orders, and low production scheduling sentiment, leading to a decline in LCO output in April.
China's LCO production is expected to be 7,480 tonnes in May 2026, down 1.19% MoM and 34.04% YoY. As downstream battery cell demand shows no signs of recovery, procurement remains weak, market participants are largely adopting a wait-and-see approach, and production is maintained only for long-term agreement deliveries. Consequently, the LCO output is expected to continue declining in May.
Edited by Cassie Li, lixiangying@mysteel.com
