Output of lithium hydroxide dropped slightly, lithium demand from 8-series ternary materials increased significantly

SHANGHAI, Jul 14 (SMM) — Output of lithium hydroxide fell 5% month-on-month in June. Supply in Jiangxi increased slightly, but some large smelters, such as Yahua, Tianyi, and Albemarle, have closed for annual maintenance until late July, reducing supply in the spot market. Guangxi Tianyuan halted production due to delay in raw material delivery and overhaul of natural gas pipeline in industrial park.

Domestic lithium hydroxide output is expected to drop 10.1% on the month to 12,860 mt in July.

Demand from high-nickel 811 ternary materials rose 17% in June, the biggest contributor to demand growth of lithium hydroxide. Some downstream companies, especially Ningbo Ronbay Technology, continued to release new capacity. Lithium demand will increase further in July with the continued capacity release from mainstream downstream manufacturers, such as Ronbay, Easpring and Zhenhua.