As of April 16, 29 publicly listed companies across China’s lithium battery supply chain had released their 2024 earnings reports. Of these, 24 remained profitable—but only nine recorded year-on-year growth in net profit attributable to shareholders.
Source: International Financial News
As of April 16, 29 publicly listed companies across China’s lithium battery supply chain had released their 2024 earnings reports. Of these, 24 remained profitable—but only nine recorded year-on-year growth in net profit attributable to shareholders. Segment-wise, lithium producers were hit hardest by the steep decline in lithium carbonate prices, with several posting significant losses. However, a few still managed to turn a profit thanks to cost advantages. Lithium battery makers, while generally in the black, are contending with mounting pressures, including challenges tied to overseas expansion.
In 2024, lithium carbonate prices dropped further—from around RMB 100,000 per ton to roughly RMB 70,000 per ton. The three dominant lithium producers all suffered heavy losses as a result.
Tianqi Lithium posted a net loss of RMB 7.905 billion, citing three key factors: volatility in lithium markets, reduced investment income from associate company SQM, and an impairment charge on its second-phase lithium hydroxide project in Australia.
Ganfeng Lithium reported its first loss since going public, with a net shortfall of RMB 2.074 billion. The company’s gross margins for lithium products and lithium battery operations dropped to 10.47% and 11.66%, respectively—down 2.06 and 6.3 percentage points from a year earlier.
Shengxin Lithium Energy swung to a net loss of RMB 622 million, reversing a profit in the previous year. The company attributed the downturn to prolonged weakness in the lithium salt market, where persistently low prices put pressure on both operations and earnings.
Still, some lithium salt producers remained profitable by leveraging lower costs through salt-lake extraction methods, which helped sustain higher gross margins. Among the nine companies that achieved net profit growth, five were lithium battery manufacturers.
CATL (Contemporary Amperex Technology Co., Ltd.) led the field, reporting RMB 50.74 billion in net profit attributable to shareholders—a 15.01% increase year-on-year. While the company saw its first-ever annual revenue decline—down 9.7% to RMB 362 billion—it maintained a wide lead over its industry peers.
As of April 9, the benchmark lithium carbonate futures contract fell below RMB 70,000 per ton for the first time in six months, with spot prices for battery-grade lithium carbonate hitting a low of RMB 69,400 per ton. With prices continuing to fluctuate, lithium producers remain focused on cost reduction and operational efficiency.
Industry analysts expect the oversupply situation to ease in 2025, with lithium carbonate prices projected to range between RMB 60,000 and RMB 100,000 per ton.
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