According to customs data, China imported 6,835 tonnes of lithium hydroxide in March 2026, up 66% month-on-month and double year-on-year. Of this, 2,927 tonnes came from Indonesia, accounting for about 48% of total imports, while approximately another 40% came from Australia and South Korea. During the same period, China exported 3,143 tonnes of lithium hydroxide, up 20% month-on-month but down 26% year-on-year. In terms of exports, 2,059 tonnes went to South Korea and 278 tonnes to Japan. Since 2025, the combined effect of diverging domestic and overseas demand and continued overseas supply of lithium salts has caused excess lithium hydroxide to flow one‑directionally into the Chinese market. From the fourth quarter of 2025, domestic imports of lithium hydroxide remained at persistently high levels, while exports continued to weaken. Entering the first quarter of 2026, total imports exceeded 16,000 tonnes, while total exports were less than 8,000 tonnes, resulting in net imports of more than 8,000 tonnes — a complete reversal of the trade pattern characterised by "shrinking exports and surging imports". In terms of major import sources, Japan, South Korea, Australia and Indonesia accounted for a significant share. The key reason is that both domestic demand and prices are more favourable than overseas markets: In the third quarter of 2025, driven by expectations of subsidy policy reduction in 2026 and bullish sentiment on raw material prices, demand for ternary cathode materials remained strong in the fourth quarter. While overseas lithium hydroxide production lines maintained relatively stable output, downstream demand fell short of expectations, leading to rising inventory pressure among overseas holders – who had a strong incentive to destock towards the end of the year. Price increases for lithium hydroxide overseas lagged behind those in China, creating a profitable import arbitrage window. Coupled with the anticipated launch of lithium hydroxide futures in 2026, the number of trading participants involved in lithium hydroxide imports increased significantly. Given the long negotiation cycles and relatively stable supply channels with overseas suppliers, lithium hydroxide from Japan, South Korea and Australia has continued to flow into China. However, it is worth noting that although the continuous increase in import volumes has made lithium hydroxide more readily available for trading in China from Q4 2025 to Q1 2026, the quality of the lithium hydroxide flowing into the country is uneven due to the relatively customized production requirements of ternary cathode materials. As a result, there is a certain lag before it actually reaches material manufacturers. Looking ahead, as long‑term orders are steadily delivered, import volumes are expected to remain relatively high, while the potential for export growth is likely to remain limited.

Recycling Industry Events This Week (April 4.27-4.30)

This week, ternary cathode material prices edged slightly lower, though the overall change remained limited. On the raw material front, cobalt sulfate prices held steady, manganese sulfate saw a modest increase, while nickel sulfate declined slightly. Lithium carbonate and lithium hydroxide prices also softened. Spot lithium salt prices are currently range-bound, with the future trend still uncertain. Further guidance from overseas supply-side developments remains to be monitored. On transaction activity, payable levels for EV market orders showed no notable changes recently. In the consumer and e-mobility markets, some battery cell manufacturers conducted batch price-linked restocking during this week's period of low-range lithium salt price fluctuations, resulting in slightly more active transaction activity compared to the previous week. On the demand side, the domestic EV market showed modest recovery, though the increase was limited, and manufacturers remain cautious about future production schedules. Demand in the e-mobility market remained relatively subdued, with production still largely based on sales orders and need-based procurement. On overseas orders, after the export rush period ended in April, order volumes declined, though the magnitude of the decline was smaller than previously expected. Based on current conditions, overall industry production in April is still expected to see a certain degree of decrease compared with March.

Most second-quarter orders in the domestic EV market have been signed sequentially. While some manufacturers saw modest upward adjustments in payables, overall market changes remained limited.

Recently, Xinjiang Blue Diamond Lithium Energy Technology Co., Ltd. published the first official public notice for the environmental impact assessment of its lithium salt production project. The project is located in Toksun County, Turpan City, Xinjiang, with a total investment of 2.5 billion yuan. It will include a production line capable of producing 35,000 tons of battery-grade lithium carbonate and 935 tons of anhydrous lithium chloride per year, along with supporting facilities such as a raw material preparation area, pyrometallurgical area, leaching and electrolysis area, and production area.

Ganfeng Lithium reported 2025 revenue of 23.082 billion yuan, up 22.08% year on year, with net profit attributable to shareholders of 1.613 billion yuan, swinging to profit. Basic EPS was 0.8 yuan. A cash dividend of 1.5 yuan (pre-tax) per 10 shares is proposed. During the period, the global lithium salt industry underwent deep adjustments; after hitting new lows in the first half, lithium prices rebounded strongly, driving improved operating results. Note: Q4 net profit came in at 1.587 billion yuan, up 185% quarter on quarter from 557 million yuan in Q3.