In February 2025, SMM's domestic lithium carbonate production gradually recovered, up 2% MoM and up 97% YoY. Most upstream lithium chemical plants completed production line maintenance, and production gradually resumed.
By raw material type, February's lithium carbonate derived from spodumene production increased by 4% MoM. Some lithium chemical plants completed production line maintenance during the Chinese New Year and gradually returned to normal production levels, with production steadily increasing. However, some lithium chemical plants were still under maintenance, and weaker demand in February led to a reduction in orders under tolling agreements for some lithium chemical plants. Overall, the total output of lithium carbonate derived from spodumene showed some growth; lithium carbonate derived from lepidolite also increased, up 7% MoM. The resumption of production by top-tier enterprises provided strong support for the total output of lithium carbonate derived from lepidolite, but other non-integrated smelters continued to operate at low production levels due to cost pressure. Lithium carbonate derived from salt lake production slightly decreased due to weather impacts, down 2% MoM. Recycled lithium carbonate production also continued to decline due to the Chinese New Year maintenance and holiday shutdowns at lithium chemical plants, down 7% MoM.
In March, most lithium chemical plants are expected to return to normal production levels, coupled with gradually recovering downstream demand, which will provide production momentum for upstream lithium chemical plants. SMM's domestic lithium carbonate production in March is expected to increase significantly, up 25% MoM.
