Battery Materials Market Weekly

Week 9 Analysis (Mar. 5, 2026)

Executive Summary

Lithium Complex Corrects Sharply

Battery-grade LCE plunged to ¥155,000/t ($22,419), down 11.4% WoW, reversing last week's post-holiday spike to ¥175,000/t. LiOH granular fell 8.5% to ¥150,500/t. Futures led the correction early-week then recovered. Cathode plants restocked at low prices; LCE inventory remains lean. Outlook: range-bound.

LiPF₆ −9.4%, Electrolyte Chain Weakens

LiPF₆ fell sharply to ¥115,000/t ($16,634) as LCE futures softened and LiF prices declined. Large producers planning maintenance turnarounds. Downstream electrolyte firms procured on orders only. FEC also fell 5.9% to ¥64,000/t. Electrolyte formulation prices (ternary, LFP) remain stable as a result of product mix.

Upstream Surges — GPC +4.5%, Pitch Rising

GPC average rose to ¥3,080/t (+4.5% WoW) as Sinopec, CNPC, CNOOC all raised prices. Coal tar pitch heading toward ¥5,300–5,600/t as distillation halts tighten supply. Needle coke firming. Anode selling prices flat — cost squeeze intensifying on already-thin margins.

Anode Steady; Cathode Mixed on LCE Reversal

Artificial anode held flat at ¥53,500/27,500/20,000 (H/M/L) supported by EV policy demand tailwinds. LFP power grade fell 5.3% to ¥55,400/t. NCM5 eased 2.2% to ¥181,400/t. LCO edged down just 0.3% to ¥395,000/t; stable cobalt market cushions decline. NEV production and sales both grew YoY in January 2026.

Market at a Glance

Weekly Price Direction Heatmap (USD/t, Ex-VAT)

Anode High-End

Artificial Graphite

→ STABLE

$7,738 USD/t

Anode Mid-Tier

Artificial Graphite

→ STABLE

$3,978 USD/t

Anode Low-End

Artificial Graphite

→ STABLE

$2,893 USD/t

LCE Bat-Grade

Battery Grade 99.5%

↓ PLUNGE

$22,419 USD/t

LCE Ind-Grade

Industrial 99.2%

↓ PLUNGE

$21,985 USD/t

LiOH Granular

Battery Grade

↓ PLUNGE

$21,768 USD/t

LiOH Micro-Powder

Battery Grade

↓ PLUNGE

$22,564 USD/t

LiPF₆

Average Market

↓ PLUNGE

$16,634 USD/t

Ternary Electrolyte

Formulation

→ STABLE

$4,773 USD/t

LFP Electrolyte

Formulation

→ STABLE

$4,628 USD/t

FEC Additive

Electrolyte Additive

↓ PLUNGE

$9,257 USD/t

VC Additive

Electrolyte Additive

→ STABLE

$21,841 USD/t

NCM 5-Series

Single Crystal

↓ SOFT

$26,238 USD/t

NCM 613

Single Crystal

↓ DOWN

$26,527 USD/t

LFP Power Grade

Power Grade

↓ PLUNGE

$8,013 USD/t

LCO 4.2v

Consumer Grade

→ STABLE

$57,133 USD/t

Anode Market Analysis

Graphite Pricing (USD/t Avg)

Artificial graphite prices flat — but feedstock costs surging.

Market Commentary

GPC Surges +4.5% — Silent Margin Squeeze

Green petroleum coke (GPC) domestic average rose to ¥3,080/t as all three major Chinese refiners raised prices. Anode sell prices unchanged, creating hidden margin compression for producers without long-term contracts.

Coal Tar Pitch Heading ¥5,300–5,600/t

Modified coal tar pitch — key binder in synthetic graphite — surging as distillation output cuts tighten domestic supply. Combined with GPC, total feedstock cost pressure on anode producers intensifying rapidly.

EV Policy Supports Anode Demand Floor

January NEV production and sales both grew YoY, providing a demand floor for anode materials. However, without corresponding sell price increases, margin recovery will require either output cuts or upstream pass-through.

Cathode Market: Pricing Snapshots

LFP (Power Grade)$8,013/t ↓
NCM 613 (Single Crystal)$26,527/t ↓
NCM 5-Series (Single Crystal)$26,238/t ↓
LCO (4.2V)$57,133/t →
LMO (Dynamical MnO₂)$8,751/t ↓

Cathode Dynamics:Broad-based correction after Week 8's spike. LFP down 5.3% to $8,013. NCM5 eases 2.2% to $26,238. LCO nearly flat at $57,133 — cobalt market stability cushioning decline. LiOH buyers re-enter at corrected ¥150,500/t levels.

Cathode Comparison (USD/t)

Broad correction as lithium prices unwind from February spike.

Lithium Carbonate Market

Battery Grade (99.5%)Post-Spike Correction
$22,419/t ↓
Industrial Grade (99.2%)Tracking Battery Grade
$21,985/t ↓

Market Analysis: LCE corrects to ¥155,000/t ($22,419), down 11.4% WoW. Futures-driven February rally unwinds as downstream buyers who sat out the spike return. Cathode plants restocked at corrected prices. LCE inventory lean; market outlook range-bound near current levels.

LCE Price Movement (USD/t Avg)

Sharp correction from $25.2k peak to $22.4k.

Electrolyte & LiOH Markets

Lithium Hydroxide (USD/t Avg)

LiOH corrects 8.5% WoW to $21,768/t (granular).

LiPF₆ Status (USD/t Avg)

Plunges to $16,634/t (−9.4% WoW) — structural oversupply.

What Moved the Market This Week?

LCE Corrects 11.4% from February Peak

Battery-grade LCE fell to ¥155,000/t as the futures-driven rally unwinds. Downstream buyers who avoided buying at ¥175,000/t returned to the market at corrected levels. Physical fundamentals reassert; inventory remains lean.

LiPF₆ Plunges 9.4% on Structural Oversupply

LiPF₆ fell to ¥115,000/t — the lowest since Q4 2025 — as domestic capacity additions continue to weigh. Large producers announcing maintenance turnarounds. FEC follows down 5.9%. VC holds flat as specialty demand remains firm.

GPC Surges +4.5%; Coal Tar Pitch Spikes

Sinopec, CNPC, and CNOOC all raised GPC prices to ¥3,080/t. Coal tar pitch heading toward ¥5,300–5,600/t as distillation halts tighten supply. Anode producers face silent margin squeeze with selling prices flat.

LCO Holds Near-Flat; Cobalt Cushions Decline

LCO edged down just 0.3% to ¥395,000/t ($57,133). Stable cobalt spot market cushions the lithium correction for cobalt-containing cathodes. Consumer electronics demand providing demand stability for LCO.

Strategic Outlook

Risk Warning: Week 9 brings broad-based correction — but the real story is the anode feedstock cost surge. GPC +4.5% and coal tar pitch heading toward ¥5,300–5,600/t while anode sell prices stay flat. This silent margin squeeze will force either output cuts or pass-through price hikes in coming weeks.

D3CT Recommendation: Lock in LFP cathode procurement at corrected levels before LCE rebounds. Monitor whether LCE holds above ¥140,000/t — a breakdown below would signal further cathode relief. For anode supply chains, initiate conversations with GPC suppliers about Q2 contract pricing now before further escalation.

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