Chinese Lithium Giants Return to Profit as Prices Rebound
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Lithium ore. Photo: VCG
China’s top lithium producers swung back to profitability in the third quarter, buoyed by a rebound in lithium prices, triggering a surge in related equities.
Tianqi Lithium Corp. and Ganfeng Lithium Group Co. Ltd. both reported a return to profit in their latest earnings reports. Shares of lithium-related companies soared on the news, with Tianqi and Yongxing Special Materials Technology Co. Ltd. hitting the daily 10% gain limit Thursday. Ganfeng rose 5.3%.
The rebound marks a sharp reversal for the sector, which had been struggling with losses amid a supply glut and falling prices. A mix of disciplined production cuts, stronger demand from electric vehicles and energy storage, and policy support from Beijing is reviving the once-beleaguered market.
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- China’s top lithium producers, Tianqi and Ganfeng, returned to profit in Q3 2024 amid a lithium price rebound, boosting sector stocks.
- Tianqi posted a net profit of 95.5 million yuan; Ganfeng’s net income surged 364% to 557 million yuan, both reversing prior losses.
- Lithium prices rose nearly 13% YTD, supported by production cuts, EV demand, and Beijing’s policy, with targeted storage capacity over 180 GW by 2027.
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Who’s Who
- Tianqi Lithium Corp.
- Tianqi Lithium Corp., a top Chinese lithium producer, reported a third-quarter net profit of 95.5 million yuan ($13.4 million), reversing losses from the previous year. This turnaround was fueled by a rebound in lithium prices and strategic changes like monthly pricing at its Greenbushes mine. The company's shares soared, hitting the daily 10% gain limit.
- Ganfeng Lithium Group Co. Ltd.
- Ganfeng Lithium Group Co. Ltd. returned to profitability in Q3, reporting a 364% year-on-year net income jump to 557 million yuan, with revenue up 44.1% to 6.3 billion yuan. This reversed a year-earlier loss, with nine-month profit reaching 26 million yuan. The company's gains were driven by asset sales and increased sales volumes.
- Yongxing Special Materials Technology Co. Ltd.
- Yongxing Special Materials Technology Co. Ltd. is a Chinese lithium producer. The company's shares reached the daily 10% gain limit on Thursday due to a rebound in lithium prices, indicating positive market performance.
- Contemporary Amperex Technology Co. Ltd.
- Contemporary Amperex Technology Co. Ltd. (CATL) is mentioned in relation to the rebound in lithium prices. A mine owned by CATL halted production in August, contributing to efforts to curb overcapacity and support price increases. This suggests CATL, a major player in the new energy sector, is involved in lithium production.
- Qinghai Salt Lake Industry Co. Ltd.
- Qinghai Salt Lake Industry Co. Ltd. is a Chinese company within the lithium industry. The company reported a significant increase in its nine-month profit, reaching 4.5 billion yuan, which represents a 43.3% rise. This positive development aligns with the broader trend of improved financial performance among lithium producers due to rebounding lithium prices and increased demand.
- Tibet Mineral Development
- Xizang Mineral Development, or 西藏矿业发展股份有限公司, is one of the "other industry players" that experienced improved results in the lithium sector. The company returned to profitability during the third quarter and for the first nine months of the year, alongside other companies like Qinghai Salt Lake Industry Co. Ltd.
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What Happened When
- First nine months of 2025：
- Tianqi Lithium's cumulative profit was 180 million yuan, reversing losses from the previous year.
- First nine months of 2025：
- Ganfeng Lithium's profit reached 26 million yuan, reversing a year-earlier loss.
- First nine months of 2025：
- Qinghai Salt Lake Industry reported a profit increase of 43.3% to 4.5 billion yuan.
- First nine months of 2025：
- Tibet Mineral Development returned to profitability.
- Third quarter of 2025：
- Tianqi Lithium and Ganfeng Lithium reported a return to profitability.
- July 2025：
- Lithium prices began to rebound, supported by industry efforts to curb overcapacity.
- August 2025：
- Contemporary Amperex Technology Co. Ltd. halted production at one of its mines, contributing to the lithium price recovery.
- September 2025：
- Beijing released a national action plan targeting over 180 gigawatts of installed new energy storage capacity by 2027.
- September–October 2025：
- Seasonal demand for autos and increased energy storage needs further boosted lithium prices.
- Thursday, October 30, 2025：
- Tianqi Lithium, Yongxing Special Materials Technology hit 10% daily gain limit; Ganfeng Lithium shares rose 5.3%. Lithium carbonate traded at 83,400 yuan/ton, up nearly 13% from the start of 2025.
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