According to SMM, domestic lithium hydroxide production in January 2025 saw a significant MoM decline of 10% and was down 6% YoY. By raw material type, smelting decreased 8% MoM but was up 2% YoY. This month's production was impacted by the Chinese New Year, with many companies scheduling year-end maintenance and holidays. Combined with production line adjustments and weak demand, the ramp-up of new production lines was relatively slow, leading to a noticeable reduction in overall smelting output. On the causticisation side, as most companies saw no significant improvement in orders during the month, many also scheduled holidays in late January, resulting in a significant MoM decline in production and a further drop in the operating rate. In February, due to maintenance by some companies and the expected slow resumption of operations, lithium hydroxide production is expected to continue declining, down 6% MoM, with YoY growth of less than 15%.
