China's lithium carbonate imports and exports are expected to rise significantly in 2022, following a sharp jump in 2021 because of a rapid expansion in the power battery space, industry sources said.
The country's lithium hydroxide exports are likely to get a boost over the coming years, as a barrage of overseas power battery producers sign up long-term contracts with leading lithium salt producers in China, according to sources.
China is the world's largest exporter of lithium hydroxide.
The country's imports of lithium carbonate are also set to climb, as its domestic industry sees a swift buildup of lithium iron phosphate (LFP) and ternary materials capacity.
Imports soar
China's lithium carbonate imports surged 61.7% on the year to 81,018 mt in 2021, while hydroxide imports shot up 594.2% on the year to 3,653 mt, data from the country's customs website showed Jan. 25.
China's lithium carbonate imports from Chile and Argentina rose 71.7% and 22.1% year on year to 63,739 mt and 15,675 mt, respectively, in 2021.
Imports from Chile and Argentina -- the two largest suppliers of lithium salts to China -- accounted for 98% of the country's total imports.
Hydroxide imports from Chile rose 682.6% year on year to 2,552 mt in 2021.
Exports gain traction
China's lithium carbonate exports increased 6.1% year on year to 7,943 mt in 2021, the customs data showed.
South Korea was the largest buyer of lithium carbonate, with volumes up 9% year on year at 4,797 mt in 2021, while exports to Japan fell 13.8% to 1,999 mt.
China's hydroxide exports reached 73,627 mt in 2021, up 30.1% from a year ago.
Hydroxide exports to Japan rose 67.9% year on year to 27,742 mt in 2021, while outflows to South Korea gained 52.5% during the same period to 43,427 mt.
Power battery output climbs
China's output of power battery, the major consumer for battery metals, surged 163.4% year on year to 219.7 GWh in 2021, according to separate data released by the China Automobile Battery Innovation Alliance.
Power battery output in China is expected to rise significantly in 2022, as battery makers continue to expand.
Battery metals prices up
Strong demand and tight supply have lifted seaborne lithium chemicals prices over the past few weeks. Market participants said there was still room for further gains.
S&P Global Platts assessed lithium carbonate at $43,000/mt Jan. 24, up 437.5% year on year. Lithium hydroxide increased 344.4% on the year to $40,000/mt.
Prices reflect the spot value of battery-grade material on a CIF North Asia basis, normalized to deliveries at the main ports in China, Japan, and South Korea. Lithium carbonate, however, is normalized to deliveries at the Shanghai port.
