According to the preliminary survey based on Mysteel's new samples, China's ternary precursor production reached 105,600 tonnes in July 2026, marking a month-on-month (MoM) increase of 0.38% and a year-on-year (YoY) surge of 63.8%.
The MoM output reversed from a decline to growth, primarily driven by the ramp-up in export orders spurred by overseas battery manufacturers' stockpiling preparations for Q3, alongside the temporary bottoming-out of nickel and cobalt salt prices, which prompted small and medium-sized enterprises and new production capacities to initiate low-cost stockpiling production and incremental toll-processing orders.
Entering August, the estimated output is projected to rise further to 107,500 tonnes, up 1.8% MoM. Although the YoY growth rate may narrow to 41.2%, the absolute output volume remains at historically elevated levels. Underpinning this steady production climb is, on the one hand, the persistently high capacity utilization rates among leading producers. On the other hand, it reflects the marginal demand pull on precursors from the gradual recovery of downstream cathode material production scheduling. Nevertheless, against the backdrop of the ternary battery end-market facing continuous encroachment by Lithium Iron Phosphate (LFP), the output growth momentum has already moderated to some extent, and the subsequent upside potential will depend largely on the coordination of downstream procurement cadence.
Source: Mysteel
Edited by Cassie Li, lixiangying@mysteel.com
