China’s EV sales, output hit fresh record in Sep

China's new energy vehicle sales reached 1.29 million units in September, up 17% month over month and 42.3% year over year, hitting an all-time high and surpassing the record set in August, the China Association of Automobile Manufacturers (CAAM) said late Oct. 12. CAAM considers pure and hybrid electric vehicles as new energy vehicles.

Industry sources said Oct. 14 that China’s EV sales are expected to keep rising in October, traditionally a peak season. The Chinese government's recent stimulus measures are also helping.

China’s EV production reached 1.31 million units in September, up 19.7% month over month and 48.8% year over year.

S&P Global Commodity Insights calculations showed that China’s NEV penetration rate reached 45.8% of its total vehicle sales.

EV sales surpassed fuel car sales for the second consecutive month, reaching 51.8% of the Chinese market in September, CAAM data showed.

A supportive policy environment contributed to higher EV sales, CAAM said.

China’s total EV sales may reach 12 million units in 2024, exceeding the earlier forecast of 11.5 million units, the association further said.

CAAM data further showed that in the first nine months of 2024, China’s total EV output and sales reached 8.316 million and 8.32 million units, up 31.7% and 32.5%, respectively, compared to the same period last year.

China’s EV exports reached 111,000 units in September, up 0.9% from the previous month and 15.6% from a year earlier.

China’s EV exports may remain strong despite some countries imposing higher taxes, the China Passenger Car Association said earlier.

Power battery output

China’s output of power batteries and other batteries, a key indicator of battery metals consumption, reached 111.3 GWh in September, up 9.9% month over month and 43.3% year over year, driven by strong EV sales growth, according to the latest data from the China Automobile Battery Innovation Alliance (CABIA).

CABIA data showed that sales of power batteries and other batteries reached 103.9 GWh, up 11.9% from the previous month and 44.8% year over year.

Nickel-cobalt-manganese materials used in power batteries totaled 47,000 metric tons in September, up 6.8% from the previous month, CABIA data showed. Lithium iron phosphate materials consumption reached 200,000 metric tons during the same period, up 10.5% month over month.

Lithium chemicals prices

Sources said that despite strong output and EV sales growth, the Chinese lithium chemicals market may continue to face pressure in November.

Platts assessed battery-grade lithium carbonate at Yuan 74,000 ($10,453) per metric ton on a DDP China basis on Oct. 11, stable day on day but down Yuan 1,500/t for the week, Commodity Insights data showed.

Market feedback indicated that physical market fundamentals remained weak, prompting participants to adopt a wait-and-see approach.

Some sources said that as overcapacity persists and surplus cannot be cleared by downstream demand, lithium production will be released in large quantities as long as profit margins are generated when lithium carbonate prices rise. This makes prices more volatile; they added.