[SMM Analysis] Domestic Lithium Hydroxide Production in November Increased 2% MoM, with Expectations of a Decrease in December

According to SMM statistics, China's lithium hydroxide production continued to increase slightly in November, up 2% MoM.

From the smelting side, overall production increased by 2% MoM. Recent lithium hydroxide prices have remained at a relatively high level, prompting some enterprises to enhance their production willingness, with a few enterprises that had previously reduced or halted production resuming operations; coupled with the continued ramp-up of new production lines at leading lithium chemical plants, these factors jointly contributed to a slight increase in smelting-side production. On the causticisation side, most operating enterprises maintained their original production pace, with production slightly weaker MoM.

Looking ahead to December, production is expected to decrease by 3% MoM: on the smelting side, as downstream demand for ternary cathode material is anticipated to weaken compared to November, some upstream enterprises that produce based on sales may correspondingly reduce output. Although new production lines continue to ramp up, overall smelting-side production is still expected to show a relatively weak trend. On the causticisation side, some operating enterprises are also affected by expectations of weaker downstream demand and the wide lithium carbonate-lithium hydroxide price spread, with production also trending downward MoM.