TELF AG Recap of Week 37 Battery Materials Report 2023 – September 23, 2023
The battery materials market
The report for Week 37 of 2023 provided a view of the battery materials market, particularly focusing on nickel sulfate and cobalt sulfate production in China. It highlighted the fluctuations in production, the factors influencing these trends, and forecasts for September.
In August, nickel sulfate production in China was 42,000 mt in metal content or 193,000 mt in physical content. This represents a monthly increase of 5.12% and a yearly increase of 30.5%. The rise is mainly attributed to large factories ramping up the production of ternary cathode precursors by about 4% compared to July. Smaller factories maintained a stable output.
However, the production is expected to decrease by approximately 5% in September. This is due to a weaker demand from the refined nickel market and stable demand from precursor markets. High costs in early August resulted in some salt plants running at a loss, leading to production cutbacks.
Cobalt sulfate production in China was 7,402 mt in metal content in August, marking a 12% decrease month-over-month but a 15% increase year-over-year. For the year up to August, the cumulative production reached 57,085 mt in metal content, growing 18% YoY.
Downward price trends in August led to higher intermediate costs for raw material producers. In response to this and weaker external demand, some companies switched from cobalt sulfate to cobalt chloride production. Recycling companies faced challenges in recovering black powder, contributing to decreased production.
In September, a decline in the production of ternary precursors has been expected, which will likely reduce cobalt demand. Furthermore, integrated enterprises may see a decrease in operating rates. Cobalt sulfate production for September is expected to be 7,015 mt in metal content, representing a 5% decrease month-over-month and a 3% increase year-over-year. The Hangzhou Asian Games may also impact production in the Zhejiang region.
