China Lithium Carbonate Output In August And Forecast For September

SHANGHAI, Sep 8 (SMM) – China’s lithium carbonate output stood at 45,022 mt in August, down 1% MoM, but up 51% YoY. In terms of spodumene-based smelters, some cut output due to raw material shortages, while others resumed production after maintenance or put new projects into operation, driving up the total output. In terms of lepidolite-based smelters, decline in externally sourced raw material and maintenance disrupted production. Regarding salt lake-based smelters, their production sustained growth, driven by seasonal factors. As for battery scrap-based smelters, some reduced production for upgrading production lines, while some who source raw material externally shut down due to losses, causing the total output to drop.

In September, even though new projects are ramping up production, the total output may decline as falling lithium carbonate price will keep smelters who source raw material externally in loss-making territory and force them to cut production. We see domestic lithium carbonate output at 42,154 mt in September, down 6% MoM and up 29% YoY.