Lithium Sulfide Production Rose September and Rebound October China Leading Global Growth

SMM October 9th News:

Highlights: In September 2025, global lithium sulfide production increased domestically but decreased overseas, with China up 2.52% MoM while overseas production fell sharply by 12.99%. A strong rebound is expected in October, driven primarily by domestic capacity ramp-up. The industry faces both high growth and batch stability challenges.

I. September Sulphide Lithium Production Overview: Production Maintained Growth, Up 2.52% MoM, YoY Growth Rate 29%

In September 2025, global sulphide lithium production continued to show a certain growth trend. Among them, SMM's monthly production exceeded 3 mt, setting a new historical high, with shipments performing well. After a slight increase in August, domestic sulphide lithium production continued its growth trend.

A domestic solid-state battery enterprise launched a tender in September for a total volume of 4 mt (for the period from September to December), with prices lower than expected.

Overseas monthly production remained below 1 mt, down significantly by 12.99% compared to August. Major producers are concentrated in Japan and South Korea. Overseas progress in solid-state batteries is advancing steadily, with continuous iteration of sulphide-based solid-state battery products, though large-scale market application has not yet been achieved, thereby impacting sulphide lithium demand.

Overall, sulphide lithium production technology continues to iterate both domestically and overseas, with increasing market requirements. Batch-consistent products remain in an undersupply situation.

II. October Production Forecast: October's overall production is expected to see a strong rebound.
Domestic production in October 2025 surged 17.18% MoM, primarily driven by the continued ramp-up of new capacity and steady demand growth in downstream sectors such as solid-state batteries. Domestic producers are also continuously optimizing production processes and improving efficiency to meet the new energy industry's demand for solid-state batteries. In downstream markets, demand for solid-state batteries remains positive in areas such as robotics, EVTOL, and low-altitude applications.
Although overseas monthly production in September saw declines both MoM and YoY, the long-term demand for lithium sulfide in overseas markets persists. Some overseas producers may adjust their production strategies in October to address previous challenges, with overseas monthly production expected to rebound, up 13.43% MoM.
Overall, global lithium sulfide production in October is projected to grow further from September's level. The domestic market will remain a key driver of global production growth, while overseas markets are actively adjusting to meet market demand.
Looking ahead to Q4, growth will continue to be led by the domestic market. Many enterprises are accelerating their lithium sulfide business deployments, with new hundred-mt-scale capacity projects advancing overseas, and numerous lithium sulfide projects also progressing domestically.

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