According to a preliminary survey by Mysteel, China's ternary cathode material output in September 2026 was 82,800 tonnes, down 9.98% MoM and up 1.87% YoY.
The notable MoM decline in September ternary cathode output was mainly due to weakness on both the demand and cost sides. Domestic demand for high-end electric vehicles (EVs) was sluggish, LFP substitution continued, and battery cell manufacturers cut ternary orders and actively destocked, leading to a contraction in production schedules. On the feedstock side, lithium carbonate and cobalt prices fell at an accelerating pace. Cathode material producers saw their finished product inventories depreciate, prioritized destocking, and postponed procurement, creating a negative feedback loop of price declines-destocking-production cuts. Meanwhile, industry profitability came under pressure, and market players had insufficient incentive to increase output. Overseas high-nickel orders remained somewhat resilient, but weak domestic power demand dominated the overall weakening. In the short term, the domestic ternary cathode market remains weak, and a recovery in production schedules will require end-market recovery and feedstock price stabilization.
China's ternary cathode material output in October 2026 is expected to be 87,800 tonnes, up 6.02% MoM and up 10.68% YoY.
Edited by Cassie Li, lixiangying@mysteel.com
