[SMM Analysis：China's Lithium Hydroxide Output Edges Up 2% MoM in November, Decline Expected in December]

According to SMM statistics, China's lithium hydroxide production maintained slight growth in November, rising 2% month-on-month.

On the smelting side, overall output increased by 2% compared to the previous month. Recent relatively high lithium hydroxide prices have encouraged some companies to ramp up production, with several previously reduced or idled producers resuming operations. In addition, the continued ramp-up of new production lines at leading lithium plants further contributed to the slight increase in smelting output. On the causticization side, most operating enterprises maintained their previous production schedules, resulting in a minor month-on-month decline in output.

Looking ahead to December, production is expected to decrease by 3% month-on-month. In the smelting sector, as demand for ternary materials is projected to weaken compared to November, some upstream companies that adopt an order-driven production model may reduce output accordingly. Although new production lines continue to ramp up, overall smelting output is still expected to show a weakening trend. On the causticization side, some operating enterprises are also likely to see a month-on-month decline in production due to anticipated weaker downstream demand and the widening price spread between carbonate and hydroxide.