Lithium carbonate prices to continue to surge in February as inventories extended declines

SHANGHAI, Feb 18 (SMM)—China produced 12,480 mt of lithium carbonate in January, down 15.1% on the month, but up 21.3% on the year. Two large-scale lithium salts plants in Sichuan and Jiangxi suspended production for annual maintenance from mid January, lowering monthly lithium carbonate output by more than 1,500 mt, and they are expected to restart production in late February. Besides, power consumption restrictions in Jiangxi also affected production at local plants, which is likely to extend to end February. Lithium salts plants in Qinghai basically operated as usual during the Chinese New Year holiday, while lithium carbonate output slid by about 50% in Shandong amid environmental restrictions.

China’s demand for lithium carbonate stood at 20,727 mt in February, dipping 0.5% from January, but soaring 137.41% from a year ago. 41% of which came from ternary materials, 23% from lithium iron phosphate (LFP), 15% from lithium cobalt oxide (LCO) and 7.9% from lithium manganese oxide (LMO).