In June, the output of cathode materials totaled 228,100 tonnes, up 22.26% MoM and 93.28% YoY. Among the four major cathode materials, LFP outperformed with a YoY spike of 128.14% primarily thanks to the prosperous energy storage market, rapid commissioning of new capacities, and technique upgrade
The root cause driving cathode material production still lies in the improving end-market. According to Mysteel, new energy vehicle (NEV) remained the super star of the vehicle market, which has maintained strong momentum. The market share of NEVs hit 28.3%, and China's total exports of completed vehicles exceeded 2 million units in the first half. The supply of cathode material is expected to keep rising on bolstering demand. According to feedback from a ternary material company in East China, it is expected that the supply will continue to climb up in the H2 given that Q3 is the traditional peak season.
It is expected that LFP will still lead the cathode material production in the second half. With the release of new production capacity, it is estimated that the output of LFP will reach 1.19 million tonnes in H2 2023, a 101.41% and 87.12% increase MoM and YoY, far exceeding other cathode materials.
According to the Mysteel survey feedback, some top-tier LFP manufactures are expected to ramp up the production before the end of the year to make sure the end-market demand is well fulfilled.
Written by Alex Xie, xiehan@mysteel.com
Edited by Aggie Hu, huchenying@mysteel.com
