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"production potential" is a correctly formed phrase that is used in written English.
It generally means the ability of a company or group of people to produce something on an industrial scale. For example, "The factory's production potential is impressive, with enough resources to produce an average of 10,000 units a day."
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Roberts, B. J. Solar production potential across the United States.
The saltworks of Kaolack have considerable production potential.
Dozens more will be needed to assess the area's production potential.
Those 8.4m hectares had a production potential of 80m tons of wheat over those five years.
But marine fisheries globally have cut down this carbonate production potential.
Figure 2. Relationship between silage yield and milk production potential at Aurora, NY.
Relationship between silage yield and milk production potential at Madrid, NY.
Hybrids in the bottom left quadrant were below the mean for yield and milk production potential.
Domestic growth in July was below its expectations but that it remained near the economy's production potential.
Following are excerpts: For some time now, the growth of aggregate demand has exceeded the expansion of production potential.
Beringer, T., Lucht, W. & Schaphoff, S. Bioenergy production potential of global biomass plantations under environmental and agricultural constraints.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com