According to preliminary surveys by Mysteel, China's production of ternary cathode materials reached 87,600 tonnes in July 2026, up 0.17% month-on-month and 46.41% year-on-year.
The sustained ramp-up in production of plug-in hybrid and extended-range electric vehicle models, combined with the transmission of new model orders to the battery segment, as well as marginal improvements in demand for high-end EVs and overseas exports, have underpinned the growth.
Entering August, China's production of ternary cathode materials is expected to rise further, closely tied to the industry's preparatory cycle for the traditional peak-season months of September and October, commonly referred to as the "golden September and silver October" period, with downstream battery manufacturers continuing to ramp up production schedules. However, the year-on-year growth rate is projected to moderate notably from July, reflecting the gradual emergence of base effects, while the sustained crowding-out pressure on the NCM market from lithium iron phosphate (LFP) batteries should not be overlooked. On balance, against a backdrop of resilient end-market demand yet sluggish profit recovery, ternary cathode material production is expected to maintain a modest upward trajectory, though the year-on-year growth rate is likely to trend further downward.
For August 2026, China's ternary cathode material production is estimated at 91,300 tonnes, up 4.22% month-on-month and 31.18% year-on-year.
Edited by Cassie Li, lixiangying@mysteel.com
