China April LFP Output and Forecast for May

SHANGHAI, May 11 (SMM) - China produced 72,085 mt of LFP in April, up 2% month-on-month and 54% year-on-year. The cumulative output surged 31% YoY in January-April. Demand was bleak in early April as the entire battery industry chain focused on destocking. The energy storage market became more active after lithium carbonate prices stopped falling in the second half of April, but the NEV market remained relatively weak. On the cost side, lithium carbonate prices bottomed out in late April, while iron phosphate prices continued to fall. However, due to the time lag in cost transmission, the overall cost was temporarily stable.

LFP plants raised their production schedules for May as they believe the market outlook will improve. SMM predicts that the domestic LFP output will stand at 77,814 mt in May, up 8% MoM and 66% YoY.