[SMM Analysis] In October 2025, SMM's domestic lithium carbonate production continued to grow, exceeding 90,000 mt!

In October 2025, China's total monthly lithium carbonate production continued its growth trend, increasing 6% MoM and 55% YoY. The new energy EV and ESS markets performed better than expected, stimulating demand and encouraging active production among domestic lithium carbonate smelters, with overall operating rates remaining high.

By raw material: Spodumene, lepidolite, salt lake, and scrap-derived lithium carbonate all saw some production growth.

Spodumene-derived lithium carbonate: Total production in October increased 2% MoM. Leading lithium chemical plants maintained very high production levels. Non-integrated enterprises also sustained high output amid stronger demand. Additionally, production ramp-ups at certain new lines contributed to the growth in spodumene-derived output. Currently, spodumene-derived lithium carbonate accounts for over 60% of total production.

Lepidolite-derived lithium carbonate: Total production rose 10% MoM. The increase mainly came from enterprises previously constrained by raw material supply actively procuring feedstocks and raising operating rates. Output at other producers remained generally stable.

Salt lake-derived lithium carbonate: Total production increased 16% MoM. Output saw a notable rise due to production ramp-ups at new lines, while other producers maintained stable operations.

Scrap-derived lithium carbonate: Total production in October grew 10% MoM, primarily benefiting from sustained favorable demand for lithium carbonate, which boosted production enthusiasm among recycling enterprises. However, overall output remains limited.

Currently, the lithium carbonate market still faces uncertainty regarding mine policies in Jiangxi. However, supported by continued strong downstream demand, domestic lithium carbonate output in November is expected to remain at October's level, roughly flat MoM.

Demand side, the EV market saw rapid growth in both commercial and passenger NEVs; the ESS market experienced robust supply and demand, with supply remaining tight. Battery cell and cathode material production schedules for November continue to show positive trends, and lithium carbonate is expected to see significant destocking in November.