Global Business, BICHEM Group
As of August 27, eight Chinese listed companies in the A-share lithium sector had released their interim reports or earnings forecasts. Overall, the lithium industry remains under pressure from cyclical fluctuations, but performance diverges significantly. Profitability has improved among salt lake lithium extraction and leading enterprises, with the “two lithium giants”, Tianqi Lithium and Ganfeng Lithium, gradually recovering, while some companies continue to incur losses.
Among them, Zangge Mining reported a net profit of RMB 1.8 billion in the first half of the year, up 38.8% year-on-year, benefiting from its cost-control advantage. Ganfeng Lithium narrowed its losses year-on-year and enhanced earnings resilience through industry chain extension and its integrated layout in solid-state batteries. Tianqi Lithium is expected to achieve a net profit of RMB 0 to 155 million, with potential to turn profitable, mainly driven by an improved pricing mechanism and contributions from its subsidiaries. In contrast, Chengxin Lithium posted a loss of RMB 841 million, with losses widening year-on-year, underscoring that certain enterprises remain heavily impacted by declining prices.
In the first half of this year, lithium carbonate prices fluctuated within the range of RMB 60,000 to 80,000 per ton. The mismatch between supply and demand and intensified price volatility have further accentuated industry divergence. Experts point out that low-cost technological pathways such as salt lake lithium extraction will bring competitive advantages, while industry consolidation is expected to accelerate.
Looking ahead, lithium prices may continue to fluctuate in the short term, with minor supply-demand imbalances likely persisting next year. Uncertainties surrounding mine shutdowns in Jiangxi and multiple market-disturbing factors in September suggest that a steep price decline will be difficult to sustain.
In terms of industry trends, lithium companies are strengthening competitiveness through global resource deployment, R&D innovation, and vertical integration. Ganfeng Lihtium has expanded projects in Argentina and Mali, while boosting contributions from its energy storage and battery businesses. Tianqi Lithium continues to advance projects such as the Yajiang Cuola Mine in Sichuan, and has established an innovation research institute focusing on next-generation high-performance battery materials, lithium extraction, and recycling technologies.
Industry experts believe the lithium sector will evolve along three major trends: first, upstream resource concentration, where companies controlling high-quality mineral assets will gain pricing power; second, vertical integration of the value chain, enhancing synergies and risk resistance; and third, product portfolio upgrading, with a shift toward high-performance, high value-added products. Overall, industry divergence is likely to persist, with cost efficiency and technological innovation emerging as the decisive factors for companies seeking to stand out.