[SMM Analysis] Domestic Lithium Hydroxide Production Increased 6% MoM in October, November Output Expected to Rise Slightly

According to SMM statistics, domestic lithium hydroxide production in October continued its growth trend, up 6% MoM.

Smelting side, as demand for ternary cathode material grew notably this month, driving an increase in pick-up orders from ternary cathode material plants, smelters maintained their production schedule based on demand, resulting in a slight output increase; additionally, new production lines at some large smelters were successively put into operation and gradually ramped up, with their production ramp-up process also contributing to the overall supply increase. This led to a 7% MoM increase on the smelting side. Causticisation side, most operating enterprises maintained their original production pace, with output remaining basically stable MoM.

Looking ahead to November: individual new production lines on the smelting side will continue to ramp up slightly, while the production schedule on the causticisation side is basically stable. Overall lithium hydroxide production in November is expected to see a slight increase, with YoY performance roughly flat.