China’s Lithium Hydroxide Production Declines in Early 2024

China's lithium hydroxide production fell to 16,300 tonnes in January, marking an 18.3% month-on-month decline. This decrease was attributed to persistently low operating rates at lithium hydroxide refining plants, with some manufacturers reducing output in response to lower order volumes. Additionally, a major plant in Sichuan underwent full-line maintenance in January, further tightening supply.

Production is expected to decrease further by 15.6% month-on-month to 13,700 tonnes in February. Ongoing maintenance at several refining facilities has limited the full utilization of production capacity. Concurrently, demand for ternary materials remains weak, contributing to the subdued production levels.