Chinese lithium consumption rose sharply in 2017 in response to growing demand from manufactures of lithium-ion batteries used in electric cars and consumer electronics.
Domestic lithium consumption reached 124,700t in 2017, up by 35pc year on year, China Nonferrous Metals Industry Association data show.
Fast growth in China's electric vehicle production is the main factor behind the rise. Domestic electric and hybrid vehicle production rose by more than a half to 794,000 units in 2017, and is likely to reach 1mn units this year. This has boosted China's output of nickel-cobalt-manganese (NCM) lithium-ion ternary material.
Chinese production of battery cathode materials soared by 31pc year on year to 210,000t in 2017, including a 58pc rise in output of NCM ternary material which reached 86,000t.
Overseas demand for lithium cobalt oxide and NCM ternary material has also risen as manufacturers in Japan and South Korea reduced their domestic production and raised imports from China after improvements in product quality.
Chinese exports of lithium cobalt oxide rose by 40.5pc year on year to 38,870t in 2017, customs data show.
Strong demand from the battery sector has prompted lithium salt producers to ramp up production. Domestic lithium salt capacity has reached 250,000 t/yr, up by 47pc from 170,000 t/yr in 2016. The total capacity is 178,000 t/yr for lithium carbonate, 54,000 t/yr for hydroxide and 18,000 t/yr for chloride. China's actual output of lithium salts totalled 123,400 t/yr in 2017, up by 43.5pc year on year.
