Deteriorating COVID-19 pandemic outbreak in India hit export orders for lithium battery products

Published: Jun 8, 2021 10:52

Save

The COVID-19 outbreak has led to a precipitous decline in factory operating rates, with operating rates of pharmaceutical intermediate and active pharmaceutical ingredient (API) companies only at around 30%. India is also known as the "World's Pharmaceutical Factory" and produces nearly 20% of the world's generic drugs.

SHANGHAI, Jun 8 (SMM) – Many pillar industries in India are facing severe shock. The COVID-19 outbreak has led to a precipitous decline in factory operating rates, with operating rates of pharmaceutical intermediate and active pharmaceutical ingredient (API) companies only at around 30%. India is also known as the "World's Pharmaceutical Factory" and produces nearly 20% of the world's generic drugs. Its API is an important link in the pharmaceutical industry chain that is closely connected with upstream and downstream. Pharmaceutical companies in India have basically shut down due to large-scale lockdowns, and the supply chain of India's drug exports is currently collapsing.

Lithium metal export orders affected

Metal lithium can be divided into industrial grade and battery grade in application. Industrial-grade lithium metal is used in the pharmaceutical industry, while battery-grade lithium metal is used in the cathode of disposable lithium batteries. The mainstream downstream application of lithium metal is the pharmaceutical intermediate industry. The Covid outbreak India led to decline in Chinese export orders of lithium metal, but the impact may be relatively lagging. However, the impact on mainstream lithium metal importing countries, such as the United States, Japan and France (which are also affected by COVID-19) was relatively small.

China is the largest metal lithium smelting country. Major metal lithium manufacturers in China are concentrated in Jiangxi, Sichuan, and Qinghai. Chinese export of lithium metal stood at 506 mt in 2020, and 216 mt from January to April 2021, a year-on-year increase of 16.6%. Export is expected to decrease slightly in May and June.

Exports of 3C lithium battery products fell, softening demand for raw materials

As one of the largest consumers of smart phones, India imports about 77% of smart phones from China. The current Covid situation in India will greatly affect China's export volume of 3C products, which will send ripple effects to demand for batteries and lithium carbonate. SMM estimates that LCO output will fall 5% quarter on quarter in Q2 as a result of the off-season for 3C sector and Covid outbreaks. Major LCO producers reduced output and raw material purchase.

Lithium battery

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

Tinci Materials: Net Profit Was up 181% YoY in 2025

Tinci Materials announced that in 2025, the company achieved operating revenue of 16.649 billion yuan, up 33.00% YoY; net profit was 1.362 billion yuan, up 181.43% YoY. The company planned to distribute a cash dividend of 3 yuan (tax included) for every 10 shares to all shareholders.

11 hours ago

CATL: Net Profit Reached 72.2 billion yuan in 2025, up 42.28% YoY

CATL announced that in 2025, it recorded operating revenue of 423.702 billion yuan, up 17.04% YoY, and net profit of 72.201 billion yuan, up 42.28% YoY. The company plans to distribute a cash dividend of 69.57 yuan per 10 shares to all shareholders (tax included). CATL stated that in 2025, it achieved lithium-ion battery sales of 661 Gwh, up 39.16% YoY.

11 hours ago

12 hours ago

CPCA: In January, 35% of Used Cars Transferred Across Registration Jurisdictions, Setting a New Record

CPCA： in January 2026, transaction volume in China’s used car market reached 1.73 million units, down 8% MoM and up 18% YoY, with transaction value at 110.6 billion yuan, up 14.8% YoY. From January to December 2025, cumulative used car transactions totaled 20.11 million units, up 2.5% YoY, with transaction value at 1,289.8 billion yuan, up 0.4%. In recent years, the proportion of inter-provincial used car transfers had fluctuated between 25% and 30%, reaching a record high of 35% for the period in January 2026, transaction volume in China’s new energy used car market reached 158,000 units, down 6% MoM and up 74% YoY, with a new energy penetration rate of 12.2%. From January to December 2025, cumulative transactions of new energy used cars totaled 1.61 million units, up 43% YoY.

12 hours ago