Lithium Salt Companies' Mid-year Earnings Surge Up To 11 Times!

As of August 24, more than 20 companies involved in lithium mining and lithium salt operations have released their 2026 half-year reports, earnings forecasts, or preliminary performance results. Lithium salt producers saw a significant recovery in profits during the first half of the year, with 11 companies reporting net profits exceeding 1 billion yuan. Among them, Sinochem Resources, Western Mining, Ganfeng Lithium, and Zangge Mining all surpassed 3 billion yuan in net profit.

In terms of growth rates, Zhongkun Resources reported a net profit of 1.111 billion yuan in the first half, up 1,146.81% year-on-year; Rongjie Co., Ltd. achieved a net profit of 1.002 billion yuan, an increase of 1,076.14% compared to the same period last year. Companies such as Sinochem Resources and Western Mining doubled their earnings. Additionally, several firms including Ganfeng Lithium and Tianhua New Energy turned from losses to profitability. Notably, despite strong downstream market demand driving a reversal in supply-demand dynamics for lithium ore and lithium salts, some companies still incurred losses, highlighting continued divergence within the sector.

This round of robust profit recovery among lithium salt producers was primarily driven by strong demand from power batteries and energy storage terminals in the first half of the year.

Data shows that domestic power battery shipments reached approximately 630 GWh in the first half, growing over 30% year-on-year, while energy storage battery shipments exceeded 480 GWh, surging 80% compared to the same period last year. Battery manufacturers ramped up production capacity, with leading players operating at full capacity and selling out quickly, triggering concentrated procurement demand for lithium salts. As a result, sales conditions for lithium salt producers improved steadily, collectively boosting overall financial performance.

Under this backdrop, prices and volumes of lithium carbonate moved in tandem.

Data indicates that after stabilizing at the beginning of the year, lithium carbonate futures and spot prices rose steadily, reaching a peak of 200,000 yuan per ton in May. Although prices declined slightly in June, the average price level in the first half was significantly higher than the same period last year. With new production capacity from salt lake-based sources continuously coming online, industry output and sales increased simultaneously, directly contributing to margin recovery.

Meanwhile, optimization of internal operational strategies by leading enterprises has acted as a profit amplifier. According to market sources, Sinochem Resources adopted a sales model combining long-term contracts for volume locking, biweekly pricing, and spot pricing, complemented by hedging operations using futures, effectively adapting to the highly volatile lithium market environment.

Resource equity participation models have also delivered substantial profit gains. For example, Western Mining holds direct or indirect stakes in lithium resource companies in Qinghai Province. Leveraging the region’s abundant local lithium resources, the company achieved a doubling of its earnings.

Since July, market focus has shifted toward supply-side variables. Overseas lithium shipments from Australia and Zimbabwe have gradually resumed, increasing arrivals of lithium concentrate at ports. However, in August, some lithium concentrate arrivals fell short of expectations. Domestically, the environmental impact assessment (EIA) for CATL's Jiaxiawo spodumene mine entered the pre-acceptance stage, making resumption progress one of the key market indicators. If approved, it could reshape China’s future lithium supply landscape, although short-term constraints remain due to lengthy approval processes.

Currently, downstream demand from power batteries and energy storage is entering its peak season, while some lithium salt producers are entering maintenance periods, raising expectations of reduced output. Going forward, the pace of overseas mineral arrivals, domestic mine restarts, and downstream production schedules will jointly influence lithium price trends. For cathode, electrolyte, and cell manufacturers, mid-to-downstream companies with resource backing and long-term contract pricing advantages are likely to demonstrate stronger earnings resilience during tight lithium salt cycles, widening the performance gap with those lacking resource reserves and forced to passively accept market prices.