Nickel Sulfate
In July 2026, China's nickel sulfate production reached 233,600 tonnes, equivalent to approximately 51,400 tonnes of nickel metal (based on 60 sampled companies), down 0.4% month-on-month. Of this, approximately 11,200 tonnes of nickel metal were used in the production of nickel plates derived from nickel sulfate. The July production consisted of 0% nickel briquette/powder, 49.1% MHP, 39.48% nickel matte, 9.86% recycled nickel, and 1.56% NPI by raw material. For August 2026, China's nickel sulfate production is projected at around 52,700 tonnes of nickel metal, up 2.63% month-on-month, with about 11,800 tonnes used for nickel plate production.
The month-on-month contraction in July was mainly driven by cost pressures, with high MHP prices leaving margins negative, compounded by the traditional off-season for stainless steel consumption. The feedstock mix remained stable, with intermediates taking the dominant share. The decline in nickel plate production reflected weaker demand from the electrowinning nickel segment.
Looking ahead to August, the production is expected to pick up modestly, supported by seasonal recovery in new energy procurement and production restarts after maintenance. However, with LFP battery cathode continuing to gain share over ternary cathode materials, the scope for a sustained rebound in nickel sulfate output remains limited.
MHP
Based on Mysteel's survey of 10 sample projects in Indonesia, MHP production from hydrometallurgical sources in July 2026 reached 37,600 tonnes in nickel content, up 11.92% month-on-month but down 7.22% year-on-year.
Cumulative production for January-July 2026 totaled 245,500 tonnes in nickel content, a year-on-year decrease of 6.96%.
For August 2026, production is estimated at 38,500 tonnes, up 2.53% month-on-month but down 10.79% year-on-year.
Nickel Matte
Based on Mysteel's survey of 15 sampled projects in Indonesia, nickel matte production in July 2026 reached 31,400 tonnes in nickel content (the same below), up 2.67% month-on-month and 22.35% year-on-year. Of this, high-grade nickel matte accounted for 26,300 tonnes and low-grade nickel matte for 5,000 tonnes (excluding volumes already converted to high-grade).
Cumulative production for January-July 2026 totaled 252,100 tonnes, a year-on-year increase of 52.74%.
For August 2026, nickel matte production is estimated at 31,600 tonnes, up 0.63% month-on-month and 7.58% year-on-year, with high-grade nickel matte at 26,300 tonnes and low-grade at 5,300 tonnes.
Cobalt Sulfate
In July 2026, China's cobalt sulfate production reached 14,273 tonnes, up 1.75% month-on-month and 12.04% year-on-year. Despite the output increase, downstream demand showed no significant improvement during the month, and with sustained arrivals of cobalt intermediates, overall market sentiment remained bearish.
For August 2026, cobalt sulfate production is forecast at 13,314 tonnes, down 6.72% MoM and 4.42% YoY. In August, downstream demand is unlikely to see meaningful recovery. And high cost, as well as the impact of low-priced imported resources will put the smelters under operational pressure, leading to production curtailment.
Cobalt Chloride
In July 2026, China's cobalt chloride production reached 12,422 tonnes, up 6.1% month-on-month but down 23.2% year-on-year. During the month, raw material supply was generally ample, while long-term agreement and integrated production remained stable, leading to a modest increase in cobalt chloride output.
For August 2026, cobalt chloride production is projected at 11,736 tonnes, representing a month-on-month decrease of 5.52% and a year-on-year decline of 27.3%.
Lithium Carbonate
Mysteel's survey showed that China's lithium carbonate production came in at 101,200 tonnes in July 2026, down 4.0% month-on-month. Compared with early-July production schedules, the final surveyed output was revised lower, as some producers reduced operating rates due to insufficient spodumene feedstock or equipment maintenance.
It is expected that China's lithium carbonate production will likely rise 7.6% MoM at 108,900 tonnes in August, based on survey production scheduling. In August, feedstock arrivals for spodumene-based lines are expected to improve, with shipment from Africa gradually arriving at ports. Some producers that had previously halted the output due to ore shortages are planning to resume the production. In addition, the salt lake operations remain in their seasonal peak.
Overall, production schedules have risen notably month-on-month in August. However, attention should be paid to the actual pace of feedstock arrivals and the progress of maintenance restarts, which could affect the progress of these production schedules.
Lithium Hydroxide
According to Mysteel's survey, China's lithium hydroxide production in July 2026 reached 33,700 tonnes, up 15% monthon-month. Demand was supported by marginal improvements in the high-end battery electric vehicle (BEV) segment and overseas exports, along with a month-on-month increase in ternary cathode production schedules.
The lithium hydroxide production for August 2026 is estimated at 33,300 tonnes, down 1% month-on-month. Both smelter-based and causticization-based production are expected to see modest declines. Downstream ternary cathode production schedules are expected to continue their month-on-month increase, while producer production schedules are expected to remain broadly stable.
Ternary Precursor
According to 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 month-on-month production trend reversed from contraction to growth, driven mainly by a ramp-up in export orders as overseas battery plants built stockpiles for Q3. At the same time, nickel and cobalt salt prices stabilized at lower levels, encouraging small and medium-sized enterprises and new production lines to resume production at lower cost and take on additional toll-processing orders.
In August, China's ternary precursor production is estimated at 107,500 tonnes, up 1.8% month-on-month, still historically high despite year-on-year growth moderating to 41.2%. The steady production increase reflects two factors, including the sustained high capacity utilization rates at leading producers, and a modest demand boost from recovering cathode production schedules. That said, with ternary cathode materials losing further ground to LFP, output growth has already slowed, and the scope for further gains will depend on downstream buying behavior.
Ternary Cathode Material
According to Mysteel's survey, 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.
China's ternary cathode material production for August 2026 is estimated at 91,300 tonnes, up 4.22% month-on-month and 31.18% year-on-year. The monthly increase reflects the industry's traditional peak-season preparation cycle for September-October ("golden September, silver October") and continued production ramp-ups by downstream battery manufacturers. However, year-on-year growth is likely to moderate notably from July due to base effects, while persistent competitive pressure from LFP batteries should not be overlooked. Against a backdrop of resilient end-market demand but sluggish profit recovery, ternary cathode output is expected to maintain a modest upward trajectory, though the year-on-year growth rate is likely to trend further downward.
Cobalt Powder
In July 2026, China's cobalt powder production amounted to 617 tonnes, representing a month-on-month decrease of 6.23% and a year-on-year decline of 18.49%. During the month, downstream users largely maintained a cautious wait-and-see stance, while overall demand remained unsupported, resulting in a modest drop in output. For August, cobalt powder production is projected at 602 tonnes, down 2.43% MoM and 19.84% YoY.
Electrolytic Cobalt
China's electrolytic cobalt production reached 465 tonnes, up 19.23% month-on-month but down 79.42% year-on-year in July 2026. The triple headwinds of raw material shortages, high production costs, and weak demand are unlikely to reverse in the near term, though a few producers achieved slight output increases due to group-level operational mandates.
For August 2026, China's electrolytic cobalt production is expected to remain around 465 tonnes, flat MoM but down 75.08% YoY.
Co3O4
In July 2026, China's Co3O4 production reached 6,140 tonnes, representing a month-on-month decrease of 2.23% and a year-on-year decrease of 28.02%. During the month, downstream lithium cobalt oxide (LCO) shipments showed no significant improvement, with producers primarily fulfilling long-term agreement deliveries, keeping output at a low and stable level.
For August 2026, Co3O4 production is projected to reach 6,060 tonnes, down 1.30% MoM and 38.23% YoY. In August, downstream demand is not expected to see a substantial release, with market participants continuing to primarily consume existing feedstock inventories.
LMO
Based on Mysteel's survey, China's lithium manganese oxide (LMO) production recorded 8,640 tonnes in July 2026, rising 1.29% MoM and 0.47% YoY.
LCO
According to Mysteel's survey, China's lithium cobalt oxide (LCO) production reached 7,480 tonnes in July 2026, representing a month-on-month decrease of 3.98% and a year-on-year decrease of 31.81%. The recovery momentum of end-user demand in the consumer electronics sector remained insufficient. Although downstream battery cell manufacturers have made some progress in inventory digestion, a large-scale concentrated replenishment cycle has yet to commence.
For August 2026, LCO production is expected to remain largely flat. Tight feedstock availability limits the scope for production increases. While downstream battery cell manufacturers maintain purchases on essential demand, large-scale restocking has not yet materialized, with most transactions continuing to be fulfilled through long-term agreements. The market players maintain a wait-and-see stance. And there is limited momentum for a significant production ramp-up in August.
LFP
According to Mysteel's survey, China's lithium iron phosphate (LFP) cathode production in July 2026 stood at 531,000 tonnes, up 3.59% month-on-month. Capacity ramp-ups continued through the month, though some producers saw temporary output reductions due to restrictions like production line upgrades.
China's LFP production is projected to rise to 558,600 tonnes in August 2026, a month-on-month increase of 5.2%. Capacity releases in Shandong, Sichuan, and other regions are expected to continue, though the actual pace of ramp-ups will require close monitoring. In addition, the top-tier producers are showing increased demand for tolling services to supplement in-house output.
Iron Phosphate
In July 2026, China's iron phosphate production reached 375,800 tonnes, up 2.2% month-on-month. Mainstream producers maintained high operating rates, while new capacity in Central China was gradually released, adding to overall supply.
Anode
Based on Mysteel OilChem's survey, China's anode material production reached 372,500 tonnes in July, up 55.21% year-on-year and 7.5% month-on-month, with capacity utilization at 83.03%, up 6.92 percentage points. The increase was mainly driven by concentrated stocking of energy storage-related orders.
In August, capacity utilization is expected to rise by about 0.47 percentage points to 83.5%, with production forecast to increase by around 2,500 tonnes to approximately 375,000 tonnes. Continued strong demand from energy storage and power battery sectors is expected to support this growth.
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