Nickel Sulfate
In August 2026, China's nickel sulfate production totaled 222,200 tonnes in physical terms and about 48,900 tonnes in metal content, based on a new sample of 60 producers, down 4.87% month-on-month. Of this, about 7,700 tonnes of nickel metal were used to produce nickel plates. In terms of feedstock mix, nickel briquettes and nickel powder accounted for zero, while nickel intermediates made up 47.05%, high-grade nickel matte 41.22%, recycled nickel 10.1%, and NPI 1.64%. For September, nickel sulfate production is estimated at about 50,500 tonnes in metal content, up 3.21% month-on-month, with nickel plate production using about 7,700 tonnes.
The output fell short of expectations in August mainly due to dual pressures from costs and demand. On the cost side, persistently high MHP raw material prices squeezed refining margins, dampening producers' enthusiasm. On the demand side, weakening demand from the electrowinning nickel sector meant that only about 7,700 tonnes of nickel metal were used for nickel plate production, sharply reducing nickel sulfate consumption. Meanwhile, the new energy sector was in a traditional off-season, with ternary precursor purchases limited to essential needs and transactions remaining sluggish.
Looking ahead to September, output growth is expected to come from seasonal recovery in the ternary precursor sector and restarts after maintenance at some plants. However, with lithium iron phosphate continuing to erode ternary cathode active materials' market share, the room for a nickel sulfate production rebound is likely to remain limited.
MHP
According to Mysteel's survey of 10 sampled projects in Indonesia, Indonesia's nickel intermediate (MHP) production in August 2026 was 36,400 tonnes in metal content (the same below), down 3.06% month-on-month and 15.65% year-on-year.
From January to August 2026, Indonesia's cumulative MHP nickel production reached 281,900 tonnes, down 8.18% year-on-year.
For September 2026, Indonesia's MHP nickel production is estimated at 35,200 tonnes, down 3.30% month-on-month and 15.85% year-on-year.
Nickel Matte
According to Mysteel's survey of 15 sampled projects in Indonesia, Indonesia's nickel matte production in August 2026 was 28,600 tonnes in metal content (the same below), down 8.62% month-on-month and 2.31% year-on-year. This included 23,300 tonnes of high-grade nickel matte and 5,300 tonnes of low-grade nickel matte (excluding volumes already converted to high-grade).
From January to August 2026, Indonesia's cumulative nickel matte production reached 280,800 tonnes, up 44.43% year-on-year.
For September 2026, Indonesia's nickel matte production is estimated at 26,400 tonnes, down 8.03% month-on-month and 9.46% year-on-year, including 21,100 tonnes of high-grade nickel matte and 5,300 tonnes of low-grade nickel matte.
Cobalt Sulfate
In August 2026, China's cobalt sulfate production reached 14,648 tonnes, up 2.63% month-on-month and 5.16% year-on-year. During the month, downstream demand showed no significant improvement. However, ternary precursor demand outperformed that for lithium cobalt oxide. As a result, some producers reduced cobalt chloride output while increasing cobalt sulfate production.
For September 2026, cobalt sulfate production is forecast to remain flat month-on-month at 14,648 tonnes.
Cobalt Chloride
In August 2026, China's cobalt chloride production reached 9,839 tonnes, down 20.79% month-on-month and 39.05% year-on-year. During the month, ternary precursor demand outperformed that for lithium cobalt oxide, prompting some producers to reduce cobalt chloride output and increase cobalt sulfate production.
For September 2026, cobalt chloride production is forecast 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 in August 2026 stood at 106,500 tonnes, up 5.2% month-on-month. Compared with early-August production scheduling, the final surveyed output was revised lower, as some production lines ramped up more slowly than expected post overhaul, coupled with supply disruptions in lepidolite operations in Jiangxi.
It is expected that in September 2026, China's domestic lithium carbonate production will likely reach 116,800 tonnes, up 9.7% month-on-month. In September, lithium ore shipments from Zimbabwe are expected to arrive progressively, with related production lines likely to approach full capacity following maintenance. Some new spodumene-based lines will continue their ramp-up, while a spodumene producer in Xinjiang is expected to resume operations after maintenance, contributing to a substantial month-on-month increase in overall production schedules.
Ternary Precursor
According to Mysteel's preliminary survey under the new sample methodology, China's ternary precursor production reached 104,100 tonnes in August 2026, up 2.46% month-on-month and 36.56% year-on-year.
The MoM increase in August production was primarily driven by export order growth spurred by overseas battery cell manufacturers' Q3 stocking activities, while capacity utilization rates among leading producers remained high. In addition, the gradual recovery of production schedules at downstream cathode material plants provided a marginal boost.
Entering September, however, the growth pace has slowed notably. On one hand, domestic power battery demand has fallen short of expectations, with September ternary cathode material production schedules projected to decline by approximately 1.74% MoM, prompting some integrated producers to adjust their output accordingly. On the other hand, the industry's persistent loss-making situation has left producers with limited incentive to ramp up production. Taken together, export resilience supported the August output rebound, but weak domestic demand and cost pressures are likely to constrain further output growth in September.
In September 2026, China's ternary precursor output is estimated to reach 104,200 tonnes, up 0.1% MoM and 19.43% YoY.
Ternary Cathode Material
According to Mysteel's survey, China's ternary cathode material production reached 92,000 tonnes in August 2026, up 4.97% month-on-month and 32.11% year-on-year.
The notable MoM rebound in August production was primarily driven by the industry's entry into the traditional peak-season stocking cycle for Golden September and Silver October, during which downstream battery cell manufacturers continued to ramp up production schedules. In addition, the official levy of the battery consumption tax, effective September 1, introduced a 2% incremental tax burden, prompting cell makers and OEMs to front-load part of their September-October orders into August production. This created a tax-induced front-loading window that provided a temporary boost to demand for ternary cathode materials.
Entering September, however, the rush-production effect has gradually subsided following the tax implementation, with the earlier front-loading having already absorbed some of September's orders. At the same time, ternary cells themselves face structural headwinds, weaker-than-expected sales of high-end extended-range electric vehicle models have directly constrained the demand elasticity for ternary cells. Meanwhile, the continued encroachment of lithium iron phosphate (LFP) on the ternary market remains a critical factor to consider, with ternary cathode materials now retaining only rigid demand in high-end pure battery electric vehicles and export-bound models. Taken together, against the backdrop of persistent substitution by LFP and a diverging end-demand structure, the near-term output of ternary cathode materials is still expected to remain under pressure.
In September 2026, China's ternary cathode material production is projected to reach 90,400 tonnes, down 1.74% MoM but up 11.2% YoY.
Cobalt Powder
In August 2026, China's cobalt powder production reached 602 tonnes, down 6.23% month-on-month and 18.49% year-on-year. During the month, downstream users generally remained cautious and maintained a wait-and-see stance, while overall demand lacked support, resulting in a modest decline in output.
For September 2026, cobalt powder production is forecast at 602 tonnes, flat month-on-month.
Electrolytic Cobalt
In August 2026, China's electrolytic cobalt production amounted to 435 tonnes, representing a month-on-month decrease of 6.45% and a year-on-year decline of 76.69%. Overall output remained at a low level throughout the month, with a small-scale producer in East China having suspended operations.
For September 2026, China's electrolytic cobalt production is expected to remain largely unchanged at approximately 435 tonnes, flat MoM, with no notable adjustments to production schedules among active smelters.
Co3O4
In August 2026, China's Co3O4 production reached 4,040 tonnes, down 34.2% month-on-month and 58.82% year-on-year. During the month, downstream lithium cobalt oxide shipments showed no significant improvement. Producers primarily fulfilled long-term agreement deliveries, and several producers noticeably reduced their output.
For September 2026, Co3O4 production is forecast at 3,990 tonnes, down 1.24% MoM and 52.39% YoY.
LMO
Based on Mysteel's survey, China's lithium manganese oxide (LMO) cathode production recorded 8,590 tonnes in August, a slightly monthly contraction of 0.58%.
LCO
According to a survey by Mysteel, China's LCO production reached 7,270 tonnes in August 2026, down 2.81% month-on-month and 35.26% year-on-year. Tight feedstock supply constrained the scope for output increases. Although downstream battery cell manufacturers had demand, large-scale restocking had not yet commenced, with most deliveries being fulfilled under long-term agreements. The players maintained a wait-and-see sentiment, and production is unlikely to gain clear momentum for significant growth in the near term.
For September 2026, LCO production is forecast at 7,070 tonnes, down 2.75% month-on-month and 41.23% year-on-year.
LFP
China's lithium iron phosphate (LFP) cathode production in August 2026 reached 575,700 tonnes, up 8.42% month-on-month. The industry ramp-up was in line with market expectations, with battery cell producers placing additional orders, thus further tightening LFP supply.
For September 2026, China's LFP production is projected to rise to 604,800 tonnes, up 5.05% month-on-month. Tolling orders are expected to increase, and leading producers will continue to ramp up capacity, with higher production schedules possible if ramp-ups proceed smoothly. Going forward, attention should be paid to the pace of new LFP capacity releases and the supply stability of feedstock iron phosphate.
Iron Phosphate
In August 2026, China's iron phosphate production reached 401,800 tonnes, up 6.9% month-on-month. Production further increased as capacity in Central China and Southwest China continued to ramp up during the month.
Anode
Based on Mysteel OilChem's survey, China's anode material production reached 380,000 tonnes in August, up 49.84% year-on-year and 2.01% month-on-month. Capacity utilization rates averaged 83.17%, up 0.14 percentage point from July. The increase was driven by the stockpiling ahead of the traditional peak season, with robust demand from energy storage and power battery sectors, prompting producers to align output with orders.
In August, the industry's average utilization rate hit a five-year high and the highest so far this year. Leading anode producers operated at full capacity, while second and third-tier producers saw increased toll-processing business, further lifting overall industry utilization.
Looking ahead to September, capacity utilization rate is expected to rise another 0.33 percentage point to 83.5%, with output rising about 5,000 tonnes to around 385,000 tonnes.
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