[SMM analysis] Lithium manganate output in May increased by 121.7% with an increase of 8200 tons.

SMM6 March 23, since the second half of last year, power tools, two-wheelers, digital 3C and other terminals all have varying degrees of volume. Lithium manganate battery with good energy density, excellent low temperature resistance, and relatively low cost also occupies a place in the market, driven by strong demand downstream, production in the industry all the way up. However, recently, the lithium manganate market as a whole has a weakening trend.

需求端，5月国内锰酸锂企业下游需求有所下滑，印度，东南亚疫情反复，经济产销活动受到严重影响，当地手机，充电宝等代工厂多有停工减产，人员不齐，叠加终端芯片短缺持续，对上游3C数码型锰酸锂需求走弱持续，港口多有累货，采购需求减弱。而小动力方面，两轮车市场总体平稳，电动工具市场海外需求持续旺盛，抵消部分减弱需求。

On the supply side, China produced 8200 tons of lithium manganate materials in May 2021, a sharp increase of 121.7 per cent over the same period last year and a slight drop of 2.4 per cent compared with the same period last year. The new production lines of some large factories have been put into production one after another, the supply and demand is stable, and the output is climbing slowly. However, at present, some lithium manganate enterprises have run out of low-cost lithium carbonate inventory in the early stage, and in order to maintain production, they have to purchase high-price lithium carbonate inventory, causing costs to rise, while downstream battery factories still have inventory, and most of them hold down prices, squeezing the overall profits of lithium manganate plants, some manufacturers even have negative profits, at the same time, the current downstream 3C demand has been greatly reduced, and some enterprises, especially small and medium-sized enterprises, have reduced their orders seriously, resulting in a partial reduction in production. To guarantee the supply of old customers. Production of lithium manganate is expected to decline slightly in June.