Nickel Sulfate
In April, China's nickel sulfate production reached 254,200 tonnes, or 55,900 tonnes in Ni. content (based on Mysteel's sample of 60 enterprises), down 3.05% month-on-month. The production comprised 0% nickel briquette/powder, 54.21% MHP, 36.39% high-grade nickel matte, 7.97% secondary nickel, and 1.43% NPI by raw material. This includes approximately 15,700 tonnes of nickel sulfate used to produce nickel plate.
On the demand side, orders for downstream ternary batteries and ternary precursors remained weak. Compounded by tariff policy impacts on exports and active destocking by the industry, the procurement was largely limited to essential needs. Demand for electrolytic nickel and electrowinning nickel also declined month-on-month, further reducing nickel sulfate demand. On the supply side, raw materials such as MHP and high-grade nickel matte continued to face tight supply and high prices, leading to negative profit margins for nickel sulfate production. Non-integrated producers were forced to cut production or maintain production based on sales. Squeezed by both weak demand and tight supply, nickel sulfate production declined significantly month-on-month in April.
For May 2026, China's nickel sulfate production is estimated at approximately 51,700 tonnes in Ni. content, down 7.51% month-on-month.
MHP
According to Mysteel survey of nine sample projects in Indonesia, Indonesia's MHP production reached 27,200 tonnes in April, down 16.31% month-on-month and 13.07% year-on-year. From January to April 2026, the cumulative production of MHP stood at 139,400 tonnes, a year-on-year decrease of 4.05%.
For May, Indonesia's MHP production is estimated at 26,300 tonnes, down 3.31% month-on-month and 33.18% year-on-year.
Nickel Matte
According to the survey by Mysteel covering 15 sample projects in Indonesia, the production of nickel matte in Indonesia reached 39,900 tonnes in April 2026, down 0.98% month-on-month but up 131.28% year-on-year. This includes 31,900 tonnes of high-grade nickel matte and 8,000 tonnes of low-grade nickel matte. From January to April, the cumulative nickel matte production in Indonesia stood at 157,400 tonnes, a year-on-year increase of 60.31%.
Looking ahead, Indonesia's nickel matte production is estimated at 36,000 tonnes in May, down 9.89% month-on-month but up 117.37% year-on-year, including 32,300 tonnes of high-grade nickel matte and 3,700 tonnes of low-grade nickel matte.
Cobalt Sulfate
In April 2026, China's cobalt sulfate production reached 14,128 tonnes, representing a month-on-month decrease of 13.94% and a year-on-year decrease of 36.11%. During April, domestic cobalt sulfate raw material supply remained tight, coupled with weakening demand from ternary precursor producers and Co3O4 manufacturers, leading to a decline in output from Chinese cobalt sulfate producers.
In May 2026, China's cobalt sulfate production is projected to reach 14,943 tonnes, representing an increase of 5.77% month-on-month but a year-on-year decrease of 7.86%. In May, downstream demand for cobalt sulfate is expected to remain weak and operating rates of smelters are already at historically low levels. Some smelters are procuring recycled materials for toll processing, while most smelters are maintaining production capacities similar to April levels. Therefore, cobalt sulfate production in May is expected to see a modest increase.
Cobalt Chloride
In April 2026, China's cobalt chloride production reached 10,695 tonnes, representing a month-on-month decrease of 0.23% and a year-on-year decrease of 41.21%. In April, downstream Co3O4 production schedules remained poor, reducing demand for cobalt chloride. Meanwhile, some smelters reduced operating rates due to raw material shortages, leading to an overall decline in cobalt chloride output for the month.
In May 2026, China's cobalt chloride production is projected to reach 10,305 tonnes, representing a further decrease of 3.65% month-on-month and a year-on-year contraction of 45.22%. In May, raw material shortages are expected to persist, compounded by continued sluggish shipments of downstream Co3O4. As a result, cobalt chloride output is forecast to decline further in May.
Lithium Carbonate
According to Mysteel's survey, China's lithium carbonate production reached 103,600 tonnes in April 2026, down 1.1% from the previous month. Compared with the production plan at the beginning of April, the actual production was about 3,000 tonnes lower, mainly due to tightening spodumene feedstock. Operating rates at smelters using imported ore and some toll producers declined, while other production lines saw little change.
Looking ahead to May, China's lithium carbonate production is expected to be 95,100 tonnes, down 3.9% month-on-month. The decline in May will also primarily affect spodumene-based lines, with some producers cutting production due to low feedstock inventories and others reducing production for routine maintenance. Producers extracting lithium from salt lakes are expected to see a slight increase in production, though their share remains small. The operating rate of lithium production from lepidolite is expected to remain stable.
Lithium Hydroxide
In April, China's lithium hydroxide production reached 29,900 tonnes, down 0.4% month-on-month. Production was essentially flat compared to March, with operating rates stable among producers and demand side showing little change during the month.
For May, China's lithium hydroxide production is forecast at 28,300 tonnes, down 5.2% month-on-month. Most smelting producers are expected to maintain stable production this month. However, due to weak downstream procurement demand in the spot market, some producers are conducting routine maintenance, leading to lower operating rates and a small decline in production.
Ternary Precursor
China's production of ternary precursor 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 combined 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 continued 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.
Ternary Cathode Material
China's production of ternary cathode materials stood at 82,300 tonnes in April 2026, down 1.57% month-on-month but up 31.83% year-on-year. The slight decline in ternary cathode material production in April 2026 compared to March was most directly triggered by the front-running depletion following the removal of export tax rebates.
Entering May, the production schedule for ternary cathode materials is expected to increase by approximately 7.6% MoM. Seasonal improvements in end-user demand are transmitting to the midstream segment, with notable demand recovery observed particularly in the CATL supply chain. Additionally, some orders for lithium cobalt oxide cathode materials are shifting to NCM on a small scale. As a result, overall ternary cathode material production is projected to increase month-on-month.
In May 2026, China's ternary cathode material production is estimated to reach 88,600 tonnes, up 7.65% MoM and 45.05% YoY.
Cobalt Powder
In April, China's cobalt powder production reached 763 tonnes, down 6.38% both month-on-month and year-on-year. Market sentiment remained generally cautious during the month, with producers watching pre-holiday restocking demand ahead of the Labour Day break while waiting for further clarity on raw material arrival schedules. With limited incentive to actively expand production, overall output fell modestly.
The cobalt powder production is projected at 748 tonnes in May, down 1.97% month-on-month and 3.98% year-on-year. Downstream traditional demand, particularly from the hard alloy sector, is expected to stay weak, offering little impetus for procurement. Producers face rising inventory pressure, while cobalt intermediates imports remain delayed, keeping raw material supply tight. Against this backdrop of cautious sentiment, producers show little willingness to raise the output.
Electrolytic Cobalt
In April 2026, China's electrolytic cobalt production reached approximately 395 tonnes, representing a month-on-month decrease of 3.66% and a year-on-year decrease of 89.24%. In April, daily output remained largely stable overall. However, under the dual constraints of raw material shortages and negative profit margins, the room for output recovery was limited, with most producers idled still.
In May 2026, China's electrolytic cobalt production is expected to reach approximately 400 tonnes, representing a month-on-month increase of 1.27% but a year-on-year decrease of 87.22%. In May, although there are signs of downstream demand recovery, procurement by ternary precursor and cathode materials plants remains largely on rigid-based, with limited capacity to absorb high-priced electrolytic cobalt. Lacking sufficient orders to support a significant production ramp-up, electrolytic cobalt output is expected to remain largely unchanged in May.
Co3O4
In April 2026, China's Co3O4 production reached 7,010 tonnes, representing a month-on-month decrease of 14.25% and a year-on-year decrease of 25.35%. In April, as lithium cobalt oxide (LCO) battery cell manufacturers front-loaded part of their demand, their willingness to procure Co3O4 remained low. Smelters primarily fulfilled long-term agreement deliveries, leading to a decline in Co3O4 output for the month.
In May 2026, China's Co3O4 production is projected to reach 7,060 tonnes, representing an increase of 0.71% month-on-month but a year-on-year decrease of 25.37%. In May, due to continued sluggish shipments of downstream LCO and the front-loading of demand on the battery cell side, Co3O4 production is unlikely to see significant rebound.
LMO
China's lithium manganese oxide (LMO) production totaled 8,540 tonnes in April, down 5.11% month-on-month.
LCO
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 slow production scheduling, 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. The 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.
LFP
In April 2026, China's production of lithium iron phosphate (LFP) reached 478,200 tonnes, representing a month-on-month increase of 6.6%. During this month, multiple projects in the industry commenced production and ramped up, leading to a sustained release of effective supply.
It is estimated that LFP production will rise to 498,800 tonnes in May 2026, a month-on-month increase of 4.31%. Market order demand remains strong in May, with new capacities from a few producers continuing to ramp up. Moving forward, close attention should be paid to the ramp-up progress of new capacities and the supply stability of upstream lithium iron phosphate precursors.
Iron Phosphate
In April 2026, China's iron phosphate production reached 396,600 tonnes, up 10.18% month-on-month. The overall operating rate for anhydrous iron phosphate remained high, with the industry largely running at full capacity, meeting strong demand. Some tolling processors also ramped up operating rates during the month. A handful of producers conducted routine maintenance. Continued strength in the energy storage market drove sustained demand for anhydrous iron phosphate, with market showing strength on both the supply and demand sides.
Anode
In April, China's anode material production reached 319,400 tonnes, an increase of 4.48% month-on-month. Leading producers operated with full orders, mostly running at full capacity under contract. Second- and third-tier manufacturers saw rising demand for toll processing, and the operating rate was relatively high. The anode material market continued to produce based on sales, and the growth in downstream demand drove the supply to increase simultaneously. However, with feedstock prices remaining high, producers still exercised some restraint in expanding production.
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