Lithium Subsidiary: Lithium Carbonate Production in March Gradually Increasing, Domestic Prices Basically Stable.

In March 2025, the Lithium Industry Branch of the China Nonferrous Metals Industry Association issued a document stating that the production of lithium carbonate gradually increased, with some production lines undergoing maintenance and resuming production, leading to an increase in lithium hydroxide production. On the demand side, the production and sales of new energy vehicles continued to grow rapidly, with the installed capacity of power batteries increasing year-on-year. I. Lithium Product Prices In March 2025, domestic lithium carbonate prices remained stable. The price of battery-grade lithium carbonate fell from 74,500 yuan/ton at the beginning of the month to 73,500 yuan/ton at the end of the month, a decrease of 1.34%. The price of industrial-grade lithium carbonate also decreased from 72,000 yuan/ton to 71,800 yuan/ton, a decrease of 0.28%. The closing price of the main contract fell from 75,500 yuan/ton at the beginning of the month to 73,920 yuan/ton at the end of the month, a decrease of 2.09%, with a price difference of 2,120 yuan/ton between the spot and futures prices. March Lithium Carbonate Futures and Spot Prices (RMB/ton) In March, the domestic price of lithium hydroxide slightly decreased from 70,500 yuan/ton at the beginning of the month to 68,500 yuan/ton at the end of the month, a decrease of 2.84%. March Lithium Hydroxide Futures and Spot Prices (RMB/ton) (Data source: Asian Metal Net, Guangzhou Futures Exchange) II. Lithium Product Supply In March, the production of lithium carbonate gradually increased, with some production lines undergoing maintenance and recovery, leading to an increase in lithium hydroxide production. In March, China's lithium carbonate production gradually increased. According to statistics from the Lithium Industry Branch of the China Nonferrous Metals Industry Association, in March 2025, the national lithium carbonate production was approximately 66,000 tons, an increase of 15.1% compared to the previous month; the national lithium hydroxide production was approximately 37,000 tons, an increase of 20.9% compared to the previous month; the national lithium chloride production was approximately 1,717 tons; and the national metallic lithium production was approximately 142 tons. In March, the national lithium salt production, converted to lithium carbonate equivalent (LCE), was approximately 100,000 tons, an increase of 17.0% compared to the previous month. Table 1 March 2025 Lithium Salt Production in China The concentration of lithium salt production is relatively high. In March 2025, the top three provinces (regions) in lithium carbonate production in China were Jiangxi, Sichuan, and Qinghai, with production volumes of 20,000 tons, 12,000 tons, and 10,000 tons, respectively. March Lithium Carbonate and Lithium Hydroxide Production in Various Provinces (tons) III. Lithium Product Imports and Exports In March 2025, China's import volume of lithium spodumene decreased month-on-month, while the import volume of lithium carbonate increased. Most of the imported spodumene came from Australia, Nigeria, and Zimbabwe. In terms of imports, China imported 535,000 tons of lithium spodumene in March, a decrease of 5.8% compared to the previous month. The top three countries in terms of import volume were Australia, Nigeria, and Zimbabwe. 1-3 March China's major lithium spodumene importing countries (tons) In March, China imported 18,000 tons of lithium carbonate, an increase of 47.0% compared to the previous month, with an average import price of 73,000 yuan/ton, an increase of 3.9% compared to the previous month. Approximately 13,000 tons of lithium carbonate were imported from Chile, accounting for around 70% of the total. Over the past year, China's lithium carbonate imports (tons) and the proportion from Chile (%) On the export side, China exported 4,000 tons of lithium hydroxide in March, a decrease of 1.5% compared to the previous month, with South Korea and Japan being the main export countries. The average export price of lithium hydroxide in March was 95,000 yuan/ton, an increase of 2.8% compared to the previous month. Over the past year, China's lithium hydroxide exports (tons) and the proportion to South Korea and Japan (%) Table 2 Import and Export Volume of Lithium Products in China in January-March 2025 (tons) IV. Lithium Product Demand On the demand side, in March, the production and sales of batteries and new energy vehicles continued to grow, with the production and installation of power batteries continuing to rise. 1. Batteries In terms of production, in March, the total production of power and other batteries in China was 118.3 GWh, an increase of 18.0% compared to the previous month and 54.3% year-on-year. Over the past year, the production of power batteries and other batteries (MWh) In terms of sales, in March, the total sales of power and other batteries in China was 115.4 GWh, an increase of 28.3% compared to the previous month and 64.9% year-on-year. Out of this, the sales of power batteries were 87.5 GWh, accounting for 75.8% of the total sales, an increase of 30.7% month-on-month and 46.9% year-on-year; the sales of other batteries were 28.0 GWh, accounting for 24.2% of the total sales, an increase of 21.0% month-on-month and 166.8% year-on-year. Over the past year, the sales of power batteries (MWh) In terms of exports, in March, China exported 23.0 GWh of power and other batteries, an increase of 8.8% compared to the previous month and 75.3% year-on-year. The total exports accounted for 19.9% of the total sales that month. Out of this, the export volume of power batteries was 13.9 GWh, accounting for 60.5% of the total exports, an increase of 8.6% month-on-month and 11.3% year-on-year; the export volume of other batteries was 9.1 GWh, accounting for 39.5% of the total exports, an increase of 9.2% month-on-month and a substantial increase year-on-year. In terms of installations, in March, China installed 56.6 GWh of power batteries, an increase of 62.3% month-on-month and 61.8% year-on-year. Out of this, 10.0 GWh were ternary batteries, accounting for 17.7% of the total installations, an increase of 55.2% month-on-month and a decrease of 11.6% year-on-year; 46.6 GWh were lithium iron phosphate batteries, accounting for 82.3% of the total installations, an increase of 63.9% month-on-month and 97.0% year-on-year. Over the past year, the installation of power batteries (MWh) 2. New Energy Vehicles In March, the production and sales of new energy vehicles in China reached 1.27 million units and 1.237 million units respectively, an increase of 47.9% and 40.1% year-on-year. New energy vehicles accounted for 42.4% of total new car sales. The domestic sales of new energy vehicles in March stood at 1.079 million units, an increase of 41.9% month-on-month and 42.3% year-on-year. The domestic sales of new energy vehicles accounted for 44.8% of total domestic car sales. On the export side, China exported 158,000 units of new energy vehicles in March, an increase of 20.1% month-on-month and 26.8% year-on-year. Out of this, pure electric vehicles accounted for 103,000 units, an increase of 26.4% month-on-month and 2.5% year-on-year; plug-in hybrid vehicles accounted for 55,000 units, an increase of 10% month-on-month and 130% year-on-year.Speed (vehicles, %)Figure 11 New Energy Vehicle Sales Volume and Year-on-Year Growth Rate in the Past Year (Units, %) (Data Source: China Automotive Power Battery Industry Innovation Alliance, China Association of Automobile Manufacturers)