[SMM Analysis] Lithium hydroxide production was basically flat to weak MoM in April, and remained basically flat in May.

According to SMM, the production of lithium hydroxide remained stable to weak MoM this month, with a YoY decrease of over 25%. From the perspective of raw materials, in the smelting sector, some enterprises halted production lines or conducted maintenance this month, resulting in a slight decrease in output, while some enterprises experienced a small increase due to carbonisation demand. These offsetting factors, combined with most enterprises maintaining relatively stable production, led to the overall output in the smelting sector remaining basically flat MoM. In the causticisation sector, amid relatively low overall production and due to high inventory levels and a pessimistic outlook for the future market, some enterprises shifted their raw materials to produce battery-grade lithium carbonate. This resulted in a decreasing trend in the output of the causticisation sector, with an 8% MoM decrease and a 43% YoY decrease. The production situation in the lithium hydroxide supply sector was relatively stable in May, with output remaining basically flat and a YoY decrease of around 30%.