[SMM Analysis] In June 2025, the total domestic production of lithium carbonate by SMM increased by 8% MoM and 18% YoY

In June 2025, the domestic lithium carbonate market saw a significant increase in production, with total lithium carbonate production for the month rising by 8% MoM and 18% YoY.The main driving force behind the production increase was that, with the emergence of hedging opportunities in the futures market, several lithium chemical enterprises that had previously been operating at low operating rates resumed production, leading to a noticeable rebound in the overall output level of the industry.

By raw material type, the total production of lithium carbonate derived from spodumene in June increased by 11% MoM. The increase was partly due to the recovery in production from the end of maintenance at leading lithium chemical plants, and partly due to the significant increase in output from most non-integrated lithium chemical plants with low operating rates, stimulated by the hedging opportunities provided by the futures market. As a result, the production increase of lithium carbonate derived from spodumene was significant. The total output of lithium carbonate derived from lepidolite continued to increase, rising by 9% MoM, thanks to the continuous ramp-up of production at leading lithium chemical plants and the incremental production from non-integrated lithium chemical plants after hedging. The total output of lithium carbonate derived from salt lake increased by 7% MoM, with production now reaching its annual peak under favorable temperature conditions. The total output of recycling plants in June continued to decrease significantly, falling by 7% MoM. The main reason was that, amid a sharp decline in lithium carbonate prices, the prices of scrap and black mass remained relatively firm, resulting in severe losses for recycling lithium chemical plants and a significant reduction in output.