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China'sLiCO3 imports, LiOH exports rise in 2020

Published date: 25 January2021

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China's lithium carbonate imports rose in 2020 on a rapidrise in demand from the lithium iron phosphate (LFP) batteries sector, withexports of lithium hydroxide also higher on stronger demand from batterymanufacturers outside of China.

The country imported 50,102t of lithium carbonate in 2020,up by 71pc from 2019, with shipments in December up by 70.3pc on the year to4,722t, according to customs data.

China's production and sales of new energy vehicles(NEVs) increased in 2020. The market began to recover in the second quarter of 2020 because of the government's stimulus measures to encourage the use and purchases of NEVs, following Covid-19 disruptions in the first quarter.

The non-cobalt trend in the power battery industry, whichaccelerated in 2020 following initiatives by US electric vehicle (EV)producer Tesla and Chinese auto manufacturer BYD, has bolstered developments in the LFP battery sector.

Lithium carbonate is the main feedstock of LFP batteries,which are safer and cost less to manufacture than nickel-cobalt-aluminium/nickel-cobalt-manganese(NCA/NCM) batteries.

Lithium hydroxide exports rise

China exported 56,573t of lithium hydroxide in 2020, up by16.2pc from 2019, with deliveries in December up by 35.5pc on the year to7,392t.

Downstream demand from battery producers outside of China,mostly in Japan and South Korea, strengthened last year on expectations ofhigher demand in particular from EV manufacturers in Europe.

Europe saw a growth across major carmakers in the EV spacelast year. Volkswagen sold more than 400,000 EVs, growing its sales by 197pc,and General Motors sold more than 200,000 units, an increase of 143pc,according to a forecast by Swedish consultancy EV-Volumes.

Global sales of EVs will grow rapidly in 2021 to surpass 4.6mn, as Europe and China race for market share, EV-Volumes said.

Argus expectssupply and demand in the Chinese lithium market to be more balanced in 2021 after a year of inventory digestion and capacity adjustments in 2020, with the market shares of lithium carbonate and hydroxide decided by the battle between NCA/NCM and LFP batteries.

Argus lastassessed import prices for lithium carbonate at $7-8.50/kg cif China on 19January, unchanged from 12 January, with some buyers bidding within the range.Export prices for 56.5pc grade lithium hydroxide prices held flat from a weekearlier at $8.50-10/kg fob China on 19 January, with shipments mainly for existingorders.

China's lithium carbonate imports tonne

China's lithium hydroxide exports tonne