In December 2024, China's LMO production declined slightly MoM but showed a slight YoY increase.

This decline was mainly due to the lack of significant increase in lithium carbonate prices, which remained at a low level, making it difficult for LMO prices to improve and keeping them near the cost line. Market sentiment remained pessimistic, and with the year-end approaching, downstream demand was weak, stockpiling willingness was low, and most LMO enterprises focused on destocking and intentionally controlled production.

It is expected that by January, due to the impact of the Chinese New Year holiday, most LMO enterprises will suspend production and take a holiday, leading to a further reduction in market production, which may decline again MoM.