Nickel Sulfate
In June, China's nickel sulfate production reached 234,500 tonnes, or 52,600 tonnes in Ni. content (based on Mysteel's sample of 60 enterprises), down 2.36% month-on-month. Approximately 11,700 tonnes of nickel sulfate were used to produce nickel plate. The production comprised 0% nickel briquette/powder, 47.89% MHP, 33.43% high-grade nickel matte, 11.1% secondary nickel, and NPI 1.55% by raw material.
The June decline stemmed from weakening downstream demand for electro-winning nickel and flat procurement of ternary precursors, coupled with tight supply and high prices of MHP raw materials, which led to negative profit margins for nickel sulfate production.
For July, China's nickel sulfate production is estimated at approximately 50,800 tonnes in Ni. content, down 1.59% month-on-month, with about 10,800 tonnes of nickel sulfate expected to be used for nickel plate production. The July decline is mainly attributed to the traditional off-season for stainless steel consumption, while the procurement growth in the new energy sector is insufficient to offset the demand drop. The underlying cause remains the dual pressure of high costs and weak demand, with smelting margins showing no significant improvement.
MHP
According to Mysteel's survey of nine sampled projects in Indonesia, MHP production in Indonesia reached 30,300 tonnes in Ni. content in June 2026, up 5.21% month-on-month but down 21.85% year-on-year. From January to June, the cumulative production of MHP stood at 200,100 tonnes in Ni. content, a year-on-year decrease of 10.42%.
In July, Indonesia's MHP production is estimated at 31,600 tonnes in Ni. content, up 4.29% month-on-month but down 21.92% year-on-year.
Nickel Matte
According to Mysteel's survey of 15 sampled projects in Indonesia, Indonesia's nickel matte production reached 32,100 tonnes in Ni. content in June, down 10.58% month-on-month but up 30.06% year-on-year. This includes 26,800 tonnes of high-grade nickel matte and 5,300 tonnes of low-grade nickel matte.
From January to June 2026, the cumulative nickel matte production stood at 225,500 tonnes in Ni. content, a year-on-year increase of 61.71%.
In July, Indonesia's nickel matte production is estimated at 32,000 tonnes in Ni. content, down 0.62% month-on-month but up 24.68% year-on-year, including 26,700 tonnes of high-grade nickel matte and 5,300 tonnes of low-grade nickel matte.
Cobalt Sulfate
In June 2026, China's cobalt sulfate production reached 14,028 tonnes, down 7.34% month-on-month and 12.58% year-on-year. During the month, downstream demand for cobalt sulfate saw no significant improvement, while the supply of cobalt intermediates on the raw material side remained persistently tight. Smelters primarily maintained stable operations at low capacity utilization rates. Yet, production scheduling at ternary and LCO (lithium cobalt oxide) enterprises has already shown restorative growth.
Cobalt Chloride
In June 2026, China's cobalt chloride production reached 11,708 tonnes, down 10.67% month-on-month and 30.32% year-on-year. During the month, the tightness in raw material supply showed no signs of easing, which, combined with persistent poor shipment of downstream Co3O4, led to a decline in cobalt chloride output in June.
Lithium Carbonate
According to Mysteel, China's lithium carbonate production reached 105,400 tonnes in June 2026, an increase of 4.2% from the previous month. Compared with early-June production schedules, the final production was revised upward, mainly because some spodumene-based producers did not cut or halt the production as previously expected due to feedstock shortages, resulting in a slight upward adjustment to final output.
China's lithium carbonate production is estimated at 103,400 tonnes in July, down 2.0% month-on-month. In July, spot lithium ore supply is expected to remain tight. Some producers with their own mines may reduce operating rates due to slower-than-expected overseas ore shipments. In addition, the operating rates at toll processors in northern China are likely to remain low.
Ternary Precursor
According to Mysteel's new samples, China's ternary precursor production for June 2026 reached 105,200 tonnes, up 6.37% month-on-month and 62.35% year-on-year respectively.
Although downstream cathode active material production in June saw a slight month-on-month decline, production scheduling for high-nickel and medium-nickel high-voltage cathode remained relatively stable. In addition, precursor export orders picked up due to Q3 stockpiling by overseas battery manufacturers. Meanwhile, nickel and cobalt salt prices reached a temporary bottom in June, which encouraged small and medium-sized producers, as well as new capacities, to initiate finished product stockpiling and incremental tolling operations on the dip.
For July 2026, China's ternary precursor production is projected at 104,700 tonnes, down 0.48% MoM but up 62.4% YoY.
Ternary Cathode Material
According to Mysteel, China's ternary cathode active material production for June 2026 reached 87,500 tonnes, down 0.11% month-on-month but up 42.89% year-on-year, with the primary reason being the earlier demand front-loading. The sharp production increase in May was driven by a combination of recovering end-user consumption, stockpiling for new vehicle models, steady overseas exports, and routine restocking demand. Entering June, growth decelerated as expected, yet orders from leading producers remained relatively stable.
On the demand side for July, continued volume growth of plug-in hybrid and extended-range EV models, the transmission of new-model orders to the battery segment, coupled with marginal improvements in demand for high-end EVs and overseas exports, are expected to support production.
China's ternary cathode active material production for July 2026 is projected to reach 92,000 tonnes, up 5.20% MoM and 53.77% YoY.
Cobalt Powder
In June 2026, China's cobalt powder production reached 658 tonnes, up 7.17% month-on-month but down 15.32% year-on-year. During the month, downstream users generally maintained a cautious wait-and-see stance, with a slow pace of restocking and overall demand lacking solid support. Nevertheless, cobalt powder margins within the industrial chain remained relatively modest, leading to a slight increase in output.
Electrolytic Cobalt
In June 2026, China's electrolytic cobalt production totaled 390 tonnes, down 2.5% month-on-month and 85% year-on-year. The twin pressures of feedstock shortages and weak demand remained unresolved throughout June, with market operations expected to continue relying primarily on the depletion of hidden inventories.
For July 2026, China's electrolytic cobalt output is projected at approximately 390 tonnes, flat month-on-month but plummeting 87.22% year-on-year. The triple headwinds of raw material shortage, elevated production costs, and persistent demand weakness are unlikely to reverse in the near term. Consequently, electrolytic cobalt production is highly likely to sustain its current subdued, low-level operational trajectory.
Co3O4
In June 2026, China's Co3O4 production reached 6,310 tonnes, down 4.75% month-on-month and 37.52% year-on-year. During the month, output registered a modest decline as no notable improvement was observed in downstream LCO shipments, and the concentrated arrivals of cobalt intermediates continued to be delayed.
LMO
China's lithium manganese oxide (LMO) production totaled 8,530 tonnes in June, up 0.95% month-on-month.
LCO
According to Mysteel's survey, China's lithium cobalt oxide (LCO) cathode production reached 8,090 tonnes in June 2026, up 3.32% month-on-month but down 24.39% year-on-year. The momentum of demand recovery in the consumer electronics end-market remained insufficient. Although downstream battery cell manufacturers have seen some inventory digestion, a large-scale concentrated restocking has not yet commenced.
LFP
China's lithium iron phosphate (LFP) production reached 512,600 tonnes in June, an increase of 2.87% from the previous month. The June production increase was limited partly because the industry carried out inventory reduction by mid-year. Coupled with the fact that the capacity ramp-up progress of some enterprises was not as planned and the commissioning was delayed, the overall increase of LFP production for June was limited.
Looking ahead to July, LFP production is expected to rise further to 536,600 tonnes, up 4.68% month-on-month. Capacity continues to be released in Sichuan, Shandong, and other regions, while some producers are also advancing technological upgrades. It is necessary to continuously monitor the progress of new capacity release in the future.
Iron Phosphate
China's iron phosphate production reached 422,500 tonnes in June 2026, an increase of 1.82% from the previous month, with an average capacity utilization rate of 83.31%. In June, the major producers ran near full capacity. Some producers in central China underwent capacity expansion and maintenance during the month, while others began trial runs by the end of the month. Overall iron phosphate capacity increased, leading to a slight dip in capacity utilization rats, though levels remained elevated.
In July, China's iron phosphate supply is expected to continue its upward trend, with new capacity coming online and adding slightly to total market supply. On the demand side, lithium iron phosphate (LFP) production schedules are expected to remain strong in July, showing resilience despite the typical off-season. As a result, the iron phosphate market is expected to remain in tight supply.
Anode
According to Mysteel OilChem, China's anode material production reached 346,500 tonnes in June, an increase of 5.06% from the previous month. Leading producers were busy with orders and operated at near full capacity based on order schedules, with corresponding increases in outsourced graphitization. Driven by this, second and third-tier producers also saw higher operating rates.
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