Optimistic Market Expectations Will Drive Chinese LFP Enterprises To Ramp Up Production Further In June

SHANGHAI, Jun 9 (SMM) –China produced 111,357 mt of LFP in May, up 38% month-on-month and 93% year-on-year. The cumulative output surged 47% YoY in January-May. After destocking in April, LFP production recovered in May with the rebound of lithium carbonate prices. The production growth was mainly contributed by large enterprises. Medium-sized enterprises maintained stable production, while some small enterprises cut production a little. In end-use sectors, NEV market recovered slightly, while energy storage market boomed, driven by PV connection to power grid towards mid-year and widening difference between peak and valley power tariffs.

Optimistic market expectations have incentivised LFP enterprises to raise production schedules this month. SMM predicts that the domestic LFP output will stand at 128,744 mt in June, up 15% MoM and 74% YoY.