Lithium weakness pushes Chinese producers to consider output cuts: sources

Several Chinese lithium producers are considering production cuts or complete suspension to mitigate losses from high costs amid the ongoing lithium price decline and muted demand, sources told Fastmarkets

August 16, 2024

By Zihao Li

Automotive Battery materialsElectric vehicles Lithium Spodumene

A Chinese lithium producer source said they already cut lithium production, without disclosing further details. A second Chinese lithium producer source confirmed to Fastmarkets that they are considering adjusting their production, but no decision had been made yet.

Other Chinese lithium producers were said to either have cut or suspended production, or were considering taking such options given that current lithium prices have trended below their breakeven point, according to sources.

“We are under great pressure. Every ton of lithium salts we sell brings us losses,” the second Chinese lithium producer source said.

Lithium weakness pushes Chinese producers to consider output cuts.