【SMM Analysis】SMM's total lithium carbonate production in March 2025 increased by 23% MoM and 85% YoY, reaching a record high.

In March 2025, SMM's total lithium carbonate production hit a new high, up 23% MoM and 85% YoY. The main reasons were the resumption of normal production after maintenance at upstream lithium chemical plants and the continuous ramp-up of some production lines, which significantly boosted domestic lithium carbonate output. By raw material type, the total production of lithium carbonate derived from spodumene increased by 24% MoM. Most lithium chemical plants resumed normal production in March after the Chinese New Year maintenance, and the continuous ramp-up of some lower-cost production lines significantly boosted the output of lithium carbonate derived from spodumene. Although some small and medium-sized lithium chemical plants using lepidolite had reduced production due to the continuous decline in lithium carbonate prices, the strong supplementation from leading lithium chemical plants still led to a significant increase in the production of lithium carbonate derived from lepidolite, up 26% MoM. Although the temperature in salt lake regions remained relatively low, production had increased from the previous low levels, with an overall increase of 13% MoM. Lithium chemical recycling plants generally resumed production in March, but due to the low base, the MoM increase was significant, at around 31%. Although the persistent surplus of lithium carbonate continued to drag prices down, the current production structure is still dominated by integrated enterprises, with higher and more stable operating rates. Additionally, the continuous ramp-up of some relatively lower-cost production lines could supplement the high marginal cost production cuts. Overall, domestic lithium carbonate production in April is expected to remain stable at high levels, with fluctuations within 1%-2%.