SMM Data: China Lithium Battery Material Output in May 2022

SHANGHAI, Jun 9 (SMM) - In May, China's lithium carbonate output was 29,244 mt, up 10% MoM and 33% YoY. Though there were production cuts due to maintenance and short supply of raw materials, some new capacities ramped up the production, and some capacities resumed the production from maintenance and COVID lockdown, resulting in MoM growth in output, coupled with the peak production of brine lakes. In June, new production capacity will keep ramping up the production, and salt lake production is expected to peak in the month, so the total output may still increase. Lithium carbonate production in June is expected to be 31,128 mt, up 6% Mom and 37% YoY.

China's LFP production stood at 57,806 mt in May, up 23% MoM and 103% YoY. In the post-pandemic era, terminal demand has gradually recovered, and China's LFP production and sales finally bottomed out after three consecutive months of decline. In addition, some of the new capacities have been boosting the production, and the market supply increased. In the future, new production lines of Guizhou Yuneng, Yiwei Defang, Jintang Times, Longbai, etc. will be put into production in the third quarter, significantly expanding LFP output. On the demand side, as the pandemic is under control, most car enterprises and battery plants in the Yangtze River Delta region resumed normal production, with reviving demand in power battery and energy storage sectors. The market will pick up as a whole in June, and LFP output is estimated at 76,755 mt, an increase of 33% MoM and 161% YoY.