[SMM Analysis] LMO Prices Rebounded Against the Trend in November, Enterprise Production Schedules Increased Slightly

In November 2025, domestic LMO production increased slightly, primarily driven by improved market activity and resilient demand resulting from the significant price surge of lithium carbonate.

From the raw material side, the price increase of lithium carbonate in November was significantly larger than in mid-to-late October. Coupled with Mn3O4 maintaining high prices supported by elevated EMM prices, the comprehensive production cost of LMO further increased compared to October. However, cost pressures were translated into enterprises' confidence to hold prices firm through price transmission. Although companies raised their quotations, this did not suppress production. From the supply side, enterprises adjusted their raw material procurement pace moderately in line with order growth, and the operating rate of top-tier enterprises increased slightly compared to October. From the demand side, the rising price of lithium carbonate stimulated a "rush to buy amid continuous price rise and hold back amid price downturn" mentality among downstream battery cell manufacturers. Although large-scale concentrated stockpiling did not reoccur, phased procurement demand persisted. Additionally, continued growth in the ternary market and LCO market further supported LMO demand, offsetting the potential impact of the end of the stockpiling cycle.

Looking ahead to December 2025, as end-users enter the off-season, battery cell manufacturers will shift to just-in-time procurement. With a growing wait-and-see sentiment, they will avoid blind high-price purchases. Moreover, destocking demand before the holiday emerges, and LMO production in December is expected to show a MoM decline.