China Lithium carbonate output in October and forecast for November

The production of lithium carbonate in China in October was 40,426 mt, down 3% MoM and up 18% of YoY. In terms of lithium extraction from spodumene, the production reduction of individual salt plants in September continued until October, which was combined with a slight decrease in the OEM volume of individual salt plants, resulting in part of reductions. However, there were still offset by the production increase of projects newly put into production and the production increase of enterprise after resumption from maintenance. Overall, the output of lithium carbonate produced from spodumene was slightly reduced. In terms of lithium extraction from lepidolite, due to the cost inversion of some externally sourced lithium extraction from, individual salt plants reduced production in September and continued into October. Even as the OEM level of some salt plants increased slightly and some salt plants gradually increased production after being put into operation, total production fell slightly. In terms of lithium extraction from salt lakes, production showed seasonal decline. In terms of recycling, although the situation of cost inversion still exists, individual enterprises have experienced a slight increase in overall production due to their stable business strategies and sufficient raw materials purchased in the early stage.

The domestic lithium carbonate production is expected to be 43,970 mt in November, up 8.8% MoM and 20% YoY. Mainly because enterprises that had previously reduced production and went into maintenance in September and October gradually returned to normal production, and some new projects continued to increase production, bringing an overall recovery in the production of lithium carbonate produced from spodumene and lepidolite, However, lithium carbonate produced from salt lakes will still maintain decreasing trend due to seasonal factor. The persistence of cost-inversion will slight reduce production at smelters who use scrap as raw materials.