[SMM Analysis] Domestic Lithium Carbonate Production Hits New High in August 2025, Surges 39% YoY

In August 2025, China's monthly total lithium carbonate production hit a new record, surpassing the 85,000 mt mark, up 5% MoM and surging 39% YoY. The primary driver of sustained production growth remained spodumene-derived output, with toll processing orders for non-integrated lithium chemical plants in full swing. Meanwhile, driven by continuously improving downstream demand, the overall industry supply capacity also increased in tandem.

By raw material type:spodumene showed significant growth while lepidolite experienced a notable pullback.

Spodumene-derived lithium carbonate:total production rose 19% MoM in August. On one hand, robust downstream demand prompted some flexible production lines to switch to lithium carbonate output, contributing incremental volumes. On the other hand, non-integrated lithium chemical plants maintained high operating rates due to futures hedging profits, further boosting production.

Lepidolite-derived lithium carbonate:total production fell 24% MoM. A leading mine in Jiangxi suspended operations due to licensing issues, with its associated lithium chemical plant maintaining minimal August output through ore inventory and spot order procurement. However, production declined significantly compared to previous high operating rates. Other lepidolite-based producers maintained relatively stable operations. Overall, output reductions were pronounced due to impacts from this key mine and its supporting lithium chemical plant.

Salt lake-derived lithium carbonate: total production decreased 12% MoM, mainly affected by production cuts at some salt lake enterprises due to extraction issues, while others maintained stable output under favorable weather conditions.

Recycled lithium carbonate: August production increased 14% MoM, primarily benefiting from rising lithium carbonate prices which boosted recyclers' operating enthusiasm, though overall output scale remained limited.

The September lithium carbonate market still faces policy uncertainty regarding Jiangxi mines, but as the relevant report submission deadline has not yet passed, these mines currently maintain normal production. Additionally, both spodumene and salt lake sectors are expected to commission new production lines, coinciding with downstream demand entering the traditional peak season, sustaining positive market expectations.September's total lithium carbonate production is projected to maintain growth potential. SMM will continue closely monitoring the implementation details of Jiangxi's mining policies.