Summary of Conference Call on China Battery Materials Industry Overview - The focus of the conference call is on the lithium battery materials industry in China, particularly the demand and supply dynamics of lithium as of January 2026. Key Points Demand and Supply Dynamics - Strong on-the-ground demand for lithium has been observed, with weekly apparent consumption increasing for three consecutive weeks, indicating a robust value chain activity ahead of the Chinese New Year (CNY) seasonality [1] - Some smelters are beginning maintenance offline, leading to a 2% week-over-week (WoW) decrease in weekly production [1] - Anticipation of a front-loading export window before the export tax rebate cut on April 1st, which may pull forward some demand from the traditional peak season (March and April) into the first quarter of 2026 [1] Price Trends - Lithium prices are expected to remain at a high level in the near term, with the lower band of prices likely to be lifted due to favorable supply and demand dynamics [1] - The average selling prices (ASP) for lithium carbonate (Li2CO3) and lithium hydroxide (LiOH) have shown an upward trajectory, with Li2CO3 priced at Rmb164.5k/ton and LiOH at Rmb156.5k/ton as of January 22, 2026, compared to Rmb159k/ton and Rmb150.5k/ton on January 15, 2026 [2] Production and Inventory Insights - China's Li2CO3 production decreased by 2% WoW to 22,217 tons, with specific outputs from brine, lepidolite, spodumene, and recycling also showing declines of 1%, 2%, 1%, and 4% respectively [2] - Total inventory of Li2CO3 stood at 108,896 tons, reflecting a 1% decrease WoW. Notably, inventory levels for downstream players (mainly cathode makers) increased by 5%, while smelters saw a 1% increase, and battery makers and traders experienced a 5% decrease in inventory [2] Additional Insights - The report emphasizes the importance of monitoring the lithium market closely due to the potential impacts of seasonal demand and regulatory changes on pricing and supply dynamics [1][2] - The data presented is sourced from SMM and Citi Research, indicating a reliance on reputable industry databases for accurate market analysis [1][2] This summary encapsulates the critical insights from the conference call regarding the lithium battery materials industry, highlighting demand trends, pricing movements, and production statistics.