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| XTC New Energy Materials |
Production and Sales Volume Declines Despite Capacity Expansion
Yongxing Special Materials Technology saw its lithium carbonate output and sales fall in 2024. The company produced 26,048 tonnes, down 3.9% from 2023, with sales also slipping 3.2% to 26,028 tonnes. Yongxing began mass production in 2020 and expanded capacity to 30,000 t/yr by 2022. However, demand volatility and falling lithium prices impacted overall output performance.
Revenue and Profit Fall Sharply as Market Weakens
The firm posted an operating income of 8.074 billion yuan in 2024, a 34% decline from the prior year. Net profit dropped by 69% to 1.043 billion yuan, reflecting worsening lithium market conditions. Yongxing primarily sources lepidolite from local mines in Jiangxi and supplies to major cathode makers. These include XTC New Energy, Hunan Yuneng, and Dynanonic, major players in China’s EV supply chain.
The Metalnomist Commentary
Yongxing’s performance reflects broader challenges in the lithium industry as overcapacity meets softening demand. While long-term fundamentals remain strong due to electrification, short-term oversupply will likely keep prices subdued. Producers may shift focus to cost control and strategic partnerships to weather the turbulence ahead.
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