BUSINESS

China’s Lithium Giants Signal Sector Recovery With Profit Surge Forecasts

Published: Jul. 16, 2026 3:53 a.m. GMT+8

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Ganfeng Lithium's booth at the 2026 International Energy Storage and Battery Exhibition in Shanghai on June 4, 2026. Photo: VCG

China’s two largest lithium producers are projecting sharp profit increases for the first half of 2026, as rebounding prices for the battery material and strong demand from the energy storage sector fuel a recovery across the upstream supply chain.

The forecasts from Ganfeng Lithium Group Co. Ltd. and Tianqi Lithium Corp. point to a broader rebound in the global lithium industry after a volatile start to the year, when prices swung sharply in response to trade policy changes in China and Zimbabwe as well as shifts in demand from overseas energy storage markets.

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Ganfeng and Tianqi forecast sharp profit increases for H1 2026, driven by higher lithium prices and energy storage demand.
Other producers like Qinghai Salt Lake and Zangge also expect profit growth from rebounding lithium prices.
Lithium carbonate futures rose nearly 30% in H1, with policy shifts causing volatility, and a slight global deficit predicted for 2026.

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Who’s Who

Ganfeng Lithium Group Co. Ltd.: Ganfeng Lithium Group Co. Ltd. expects H1 2026 net profit of 3.65–4.6 billion yuan ($540–$680 million), reversing a 530 million yuan loss from a year earlier. The turnaround is driven by higher lithium salt prices, increased battery sales, cost improvements from new capacity, and gains from selling Pilbara Minerals shares.

Tianqi Lithium Corp.: Tianqi Lithium Corp., one of China’s largest lithium producers, forecast a first-half 2026 net profit of 2.85–4.25 billion yuan, a 3,276%–4,934% year-on-year surge. The rebound was driven by higher lithium prices and expected investment gains from its Chilean associate, SQM.

Pilbara Minerals Ltd.: Pilbara Minerals Ltd. is an Australian lithium mining company. The article notes that Ganfeng Lithium sold its shares in Pilbara Minerals, generating investment gains that contributed to Ganfeng's projected profit increase for the first half of 2026.

Sociedad Química y Minera de Chile SA: Sociedad Química y Minera de Chile SA (SQM) is a Chilean associate of Tianqi Lithium Corp. Tianqi's forecasted H1 2026 profit surge is partly due to expected investment gains from SQM, reflecting its role in the lithium market.

Qinghai Salt Lake Industry Co. Ltd.: Qinghai Salt Lake Industry Co. Ltd. expects first-half net profit of 6 billion yuan to 6.3 billion yuan, an increase of up to 143%.

Chengxin Lithium Group Co. Ltd.: According to the article, Chengxin Lithium Group Co. Ltd. projected a return to profitability in the first half of 2026, part of a broader recovery in the lithium industry driven by rebounding prices and strong demand from the energy storage sector.

Zangge Mining Co. Ltd.: According to the article, Zangge Mining Co. Ltd. forecast profit growth of 97.2% to 108.3% for the first half of 2026, driven by higher lithium prices and strong energy storage demand.

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What Happened When

First half of 2025：: Ganfeng Lithium reported a net loss of 530 million yuan, contrasting with its projected profit for the first half of 2026.

Late January 2026：: Lithium carbonate prices reached 189,000 yuan per ton, driven by accelerated shipments from energy storage companies ahead of a planned cut in China's battery export tax rebate.

February 25, 2026：: Zimbabwe suspended exports of lithium concentrate and raw ore, briefly pushing prices back toward 190,000 yuan per ton, their highest level since September 2023.

April 1, 2026：: China's battery export tax rebate was cut from 9% to 6%, prompting energy storage companies to accelerate shipments earlier in the year.

Early May 2026：: Domestic lithium carbonate futures touched 200,000 yuan per ton before giving back some gains.

First half of 2026：: China's two largest lithium producers, Ganfeng Lithium Group and Tianqi Lithium Corp., project sharp profit increases due to rebounding lithium prices and strong demand from the energy storage sector.

2026：: Argus data indicates a slight global lithium supply shortage, with an optimistic scenario showing a deficit of 10,000 tons and a conservative forecast showing a shortage of 6,000 tons.

AI generated, for reference only