China to remain heavily reliant on imported lithium ore amid falling domestic production

December saw domestic lepidolite mines produce 8,700 mt of LCE down 18.4% MoM. In December, most mines in Jiangxi tightened production, with integrated ones cutting output. The Yichun tantalum-niobium mine (414) closed for about 20 days for maintenance amid high stocks and low lepidolite prices. CATL's Jianxiawo mine reduced its December production slightly due to lithium salt costs. Zijin's Hunan lithium mines stayed closed in December over cost issues. In January, some Jiangxi integrated mines may resume last year's normal production upon license renewal and quota reassignment. But with CATL's mines cutting output, Jiangxi's lepidolite production will need close watch.

December saw domestic spodumene mines produce 2,057 mt of LCE down 22.9% MoM. The fall was due to Sichuan's bad weather and slow Xinjiang mining ramp-up, shrinking overall output. Domestic spodumene comes mainly from Sichuan and Xinjiang. Sichuan Energy's Lijiagou may produce 180,000-200,000 mt of concentrate in 2024. Xinjiang Nonferrous Metal's Dahongliutan is ramping up, with output at about 5,000 mt monthly due to weather. Slow supply growth is expected from Sichuan's altitude and environmental rules, so reliance on imports will persist.