Nickel Sulfate
In May, China's nickel sulfate production reached 240,200 tonnes, or 52,800 tonnes in Ni. content (based on Mysteel's sample of 60 enterprises), down 5.5% month-on-month. The production comprised 0% nickel briquette/powder, 51.51% MHP, 36.99% high-grade nickel matte, 9.99% secondary nickel, and 1.51% NPI by raw material. Approximately 12,500 tonnes of nickel sulfate were used for nickel plate production.
On the demand side, downstream demand for electrolytic nickel and electro-winning nickel weakened month-on-month, and the consumption of nickel sulfate decreased accordingly. The increase in ternary precursors orders was not significant, and companies held ample raw material inventories, so procurement was largely limited to essential needs.
On the supply side, feedstocks such as MHP and nickel matte remained persistently tight and high-priced. Profit margins for nickel sulfate production turned negative, forcing non-integrated companies to cut production or maintain production based on sales, leading to a month-on-month decline in production.
Looking ahead to June, China's nickel sulfate production is estimated at 52,800 tonnes, down 0.18% month-on-month.
MHP
According to Mysteel survey of nine sampled projects in Indonesia, the production of MHP in Indonesia reached 28,800 tonnes in May, up 5.88% month-on-month but down 26.83% year-on-year. From January to May, the cumulative production of MHP stood at 169,800 tonnes, a year-on-year decrease of 8.02%.
The production of MHP in Indonesia is estimated at 29,000 tonnes in June, up 0.69% month-on-month but down 25.20% year-on-year.
Nickel Matte
According to Mysteel's survey of 15 sampled projects in Indonesia, Indonesia's nickel matte production reached 36,000 tonnes in May 2026, down 9.89% month-on-month but up 117.38% year-on-year. This includes 29,800 tonnes of high-grade nickel matte and 6,200 tonnes of low-grade nickel matte.
From January to May, the cumulative nickel matte production Indonesia stood at 193,400 tonnes, a year-on-year increase of 68.53%.
Indonesia's nickel matte production is estimated at 35,600 tonnes in June, down 0.98% month-on-month but up 44.03% year-on-year, including 29,600 tonnes of high-grade nickel matte and 6,000 tonnes of low-grade nickel matte.
Cobalt Sulfate
In May 2026, China's cobalt sulfate production reached 15,140 tonnes, up 7.16% month-on-month but down 6.64% year-on-year. In May, downstream demand for cobalt sulfate continued to be weak. Smelters' operating rates remained at historically low levels. Some smelters purchased recycled materials for tolling processing, while most smelters kept production utilization rates flat compared to April. As a result, cobalt sulfate production saw a modest increase in May.
In June 2026, China's cobalt sulfate production is expected to reach 15,330 tonnes, up 1.25% MoM but down 4.46% YoY. In June, no significant improvement in downstream demand for cobalt sulfate is anticipated. Raw material cobalt intermediates will likely remain tight in supply, and smelters are expected to continue operating steadily at low capacity utilization rates. Although production schedules for ternary and LCO cathode plants have shown recuperative growth, it will take time for this recovery to transmit to the cobalt sulfate segment. Therefore, cobalt sulfate production in June is expected to remain broadly stable.
Cobalt Chloride
In May 2026, China's cobalt chloride production reached 13,107 tonnes, up 22.55% month-on-month but down 30.32% year-on-year. In May, some producers adjusted their production plans, leading to an overall increase in production.
In June 2026, China's cobalt chloride production is expected to reach 10,595 tonnes, down 19.17% month-on-month and 46.92% year-on-year. In June, raw material shortages are not expected to ease, coupled with persistently unfavorable downstream Co3O4 shipments. Therefore, no growth is anticipated in cobalt chloride production in June.
Lithium Carbonate
China's lithium carbonate production reached 101,200 tonnes in May, down 2.3% month-on-month. Compared with early-May production schedules, the final survey production was revised slightly higher, mainly due to some spodumene-based producers completing maintenance ahead of schedule, leading to higher actual capacity utilization rates. Other production lines saw little change.
For June, China's lithium carbonate production is forecast to reach 106,400 tonnes, up 5.2% month-on-month. Spodumene-based producers in Sichuan are expected to increase capacity utilization rates due to factors such as raw material arrivals and the completion of maintenance, while some producers in northern regions may see slight production reductions, though the overall impact remains limited.
Lithium Hydroxide
China's lithium hydroxide production was 29,200 tonnes in May 2026, down 2.2% month-on-month, based on Mysteel's survey. The modest monthly decline was mainly due to a few plants undergoing maintenance, while demand side remained stable.
For June 2026, China's lithium hydroxide production is estimated at 29,100 tonnes based on the production scheduling, down 0.3% month-on-month primarily because tighter spot lithium ore availability has led some plants to cut operating rates slightly, while others have completed maintenance. Overall output is expected to remain largely stable.
Ternary Precursor
According to Mysteel's new sampled producers, China's ternary precursor production reached 99,900 tonnes in May 2026, up 1.42% month-on-month and 54.88% year-on-year.
In May 2026, domestic ternary precursor production achieved a modest increase. The main reason was the increased demand from CATL, which further boosted the share of 6-series products. However, demand from some small-scale producers remained weak, leading to a slight decline in their production. Overall, ternary precursor production gradually increased.
China's ternary precursor production for June 2026 is estimated at 101,300 tonnes, up 1.4% month-on-month and 56.33% year-on-year.
Ternary Cathode Material
According to Mysteel's research, China's production of ternary cathode materials reached 87,600 tonnes in May 2026, representing an increase of 6.43% month-on-month and 43.41% year-on-year.
In May 2026, domestic production of ternary cathode materials continued to grow mildly. On the supply side, the concentrated launch of new electric vehicle (EV) models boosted stocking demand as downstream battery cell manufacturers held positive expectations for future orders and were relatively proactive in taking deliveries, which directly drove higher production schedules at cathode material plants.
Besides, overseas markets, particularly Europe, showed strong automotive sales performance, with positive sales momentum expected to continue into the second quarter, thereby supporting export demand for ternary cathode materials.
Entering June, the production growth rate is expected to moderate, though orders at leading cathode plants are expected to remain relatively stable. Overall, the growth in ternary cathode material production in May was driven by a combination of recovering end-user consumption, pre-stocking for new EV models, overseas exports, and routine restocking demand.
China's ternary cathode material production in June 2026 is estimated to reach 91,700 tonnes, up 4.74% month-on-month and 49.84% year-on-year.
Cobalt Powder
In May 2026, China's cobalt powder production reached 614 tonnes, representing a month-on-month decrease of 19.53% and a year-on-year decrease of 21.18%. During the month, traditional downstream demand from sectors such as hard alloys remained persistently weak, resulting in insufficient purchasing momentum. The cobalt powder producers faced inventory backlogs, while delays in the arrival of cobalt intermediates at the raw material end kept the feedstock supply tightness unresolved. Compounded by cautious market sentiment, declining cobalt powder prices squeezed producers' margins, leading to significant production cuts by some manufacturers.
In June 2026, cobalt powder production is expected to reach 634 tonnes, up 3.26% MoM but down 18.4% YoY. Downstream demand is not anticipated to improve significantly in June, with downstream users generally adopting a cautious wait-and-see approach and maintaining a slow restocking pace. Overall demand is expected to lack substantive support.
Electrolytic Cobalt
In May 2026, China's electrolytic cobalt production reached 400 tonnes, up 1.27% month-on-month but down 87.22% year-on-year. Although there were signs of demand recovery during the month, procurement by ternary precursor and cathode active material plants remained primarily on rigid-demand, with limited capacity to absorb high-priced electrolytic cobalt. The lack of sufficient orders to support a significant production ramp-up resulted in little change in output.
In June 2026, China's electrolytic cobalt production is expected to remain at approximately 400 tonnes, flat month-on-month and down 87.22% year-on-year. The dual pressures of raw material shortages and weak demand remain unresolved in June, and the market is expected to continue primarily consuming untracked inventories.
Co3O4
In May 2026, China's Co3O4 production reached 6,625 tonnes, down 5.49% month-on-month and 29.97% year-on-year. In May, downstream LCO cathode shipments continued to be slow, while demand from the battery cell side was already brought forward. As a result, Co3O4 production continued to decline in May.
In June 2026, China's Co3O4 production is expected to reach 6,607 tonnes, up 0.75% month-on-month but down 33.91% year-on-year. In June, as no significant improvement is expected in downstream LCO shipments, and the concentrated arrival of cobalt intermediates continues to be delayed. Therefore, the Co3O4 production in June is expected to remain largely unchanged.
LMO
China's lithium manganese oxide (LMO) production totaled 8,450 tonnes in May, down 1.05% month-on-month.
LCO
According to Mysteel's survey, China's lithium cobalt oxide (LCO) production reached 7,830 tonnes in May 2026, representing a month-on-month increase of 3.43% and a year-on-year decrease of 30.95%. The market players mostly held a wait-and-see attitude, with production sustaining long-term agreement deliveries. A few producers experienced recuperative growth in their production schedules, leading to a slight increase in LCO output in May.
For June 2026, China's LCO production is expected to reach 8,200 tonnes, up 4.73% MoM but down 23.36% YoY. The recovery of consumer electronics market remains slow. While inventories at downstream battery cell manufacturers are expected to be partially depleted, a large-scale concentrated restocking has yet to commence. Therefore, the extent of the production increase is expected to be limited.
LFP
China's lithium iron phosphate (LFP) production reached 498,300 tonnes in May, an increase of 4.2% from the previous month. Market demand remained strong during the month, with leading producers seeing rising toll-processing demand. The overall capacity utilization rates stayed high, though the ramp-up of some new capacity fell short of expectations due to raw material or production line issues.
Looking ahead, China's LFP production is expected to rise further to 519,300 tonnes in June, up 4.21% month-on-month as new capacity continues to ramp up in Shandong, Sichuan, and other regions, with actual commissioning progress requiring close monitoring.
Iron Phosphate
In May 2026, China's production of iron phosphate reached 414,900 tonnes, up 4.61% month-on-month, with industry capacity utilization rates averaged 84.03%, based on Mysteel OilChem. Some top-tier producers operated near full capacity. Although some enterprises in the Southwest and Central China regions conducted maintenance, the overall supply continued to trend upward. Driven by downstream demand, the iron phosphate market remained in a tight supply pattern.
Looking ahead to June, China's iron phosphate supply is expected to continue growing. However, tight raw material supply is affecting market sentiment to some extent. In addition, some enterprises in Central China might have new maintenance plans, while major producers are expected to continue operating near full capacity.
Anode
China's anode material production reached 319,800 tonnes in May, a marginal increase of 0.13% month-on-month. Leading producers continued to deliver long-term contracts, with orders for the second half of the year also being placed gradually. Driven by robust downstream demand, anode material production is expected to remain at current high levels. However, raw and auxiliary material prices remain elevated overall. Although low-sulfur coke prices have softened somewhat, producers remain cautious about their production pace.
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