Challenges faced by China’s ternary cathode materials producers when expanding overseas

In 2023 and early 2024, Chinese ternary cathode materials producers faced significant challenges due to pressure from destocking and weak demand within the market. This, along with fierce competition with other cathodes in the domestic market, led them to opt to redirect their efforts towards international markets. Despite this shift, ternary cathode and precursor producers must carefully evaluate the obstacles they may encounter when expanding abroad. They need to assess whether the conditions for foreign investment align with their expectations and goals. Our analysis highlights the potential hurdles that Chinese ternary cathode and precursor producers may face when establishing facilities overseas. Additionally, we identify key points that they should prioritize to maintain competitiveness in the global market.