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 sustained production growth was primarily driven by the spodumene segment, with toll processing orders for non-integrated lithium chemical plants in full swing. Meanwhile, buoyed by robust downstream demand, the industry's overall supply capacity also improved.
By raw material type: Spodumene saw significant growth, while lepidolite experienced a notable pullback.
Spodumene-derived lithium carbonate: Total production in August rose 19% MoM. On one hand, strong downstream demand prompted some flexible production lines to shift to lithium carbonate output, contributing to the increase. 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 affiliated lithium chemical plant maintaining minimal output through ore inventory and spot orders. However, production declined significantly compared to previous high operating rates. Other lepidolite-based producers remained relatively stable. Overall, output dropped markedly due to the impact of the leading mine and its supporting lithium chemical plant.
Salt lake-derived lithium carbonate: Total production decreased 12% MoM, mainly affected by reduced operations at some salt lake enterprises due to extraction issues, while others maintained stable production under favorable weather conditions.
Recycled lithium carbonate: Total production in August increased 14% MoM, benefiting from rising lithium carbonate prices which boosted recyclers' operating enthusiasm, though overall output remained limited.
In September, the lithium carbonate market still faces uncertainty regarding Jiangxi's mining policies. However, as the deadline for relevant reports has not yet passed, these mines can currently maintain normal production. Additionally, new production lines are expected to commence operations in both the spodumene and salt lake segments, coupled with seasonal peak demand downstream, keeping market sentiment positive. Total lithium carbonate production in September is projected to maintain growth potential. SMM will continue closely monitoring the implementation of Jiangxi's mining policies.
