Strong Reversal of Lithium Hydroxide Supply and Demand Structure is in Store

Lithium hydroxide supply deficit stood at 1,157 mt in March. In March, the higher cost of raw materials than the prices of lithium salts forced some enterprises to cut and stop production, resulting in a slight decrease in lithium hydroxide production.

Meanwhile, the strong demand for high-nickel ternary products overseas led to a sharp growth in the exports of lithium hydroxide. This eventually resulted in the deficit of lithium hydroxide.

Although some enterprises will continue to reduce and stop production in April, the weak end-user demand and sharp reduction in exports will lead to a lithium hydroxide surplus of 1,869 mt.