Chinese lithium and battery firms report mixed third-quarter results

Major Chinese lithium mining and battery manufacturers have released third-quarter financial reports for 2026, revealing a landscape of high revenue growth alongside emerging risks. Lithium mining companies, including Ganfeng Lithium, Tianqi Lithium, and Zangge Mining, reported significant year-on-year increases in both revenue and net profit. For instance, Ganfeng Lithium saw a massive surge in net profit, though its profit margin was diluted by its expanding lithium battery segment. Zangge Mining reported the highest absolute net profit, largely bolstered by investment income.

Despite these gains, the sector faces headwinds as lithium carbonate prices have declined from their earlier peaks, and some companies reported a quarter-on-quarter decline in profits. For example, Tianhua New Energy saw a sharp drop in quarterly net profit compared to the previous quarter.

In the battery sector, Sunwoda maintained steady operations with a 45.78% increase in revenue, reaching 63.46 billion yuan. The company is shifting its focus toward consumer batteries and energy storage systems. Notably, Sunwoda announced that its subsidiary, Sunwoda Motion, will no longer be consolidated into its financial statements following a capital increase by Xiaomi, a move expected to increase Sunwoda’s annual net profit by 3.2 to 4.5 billion yuan. Sunwoda also decided to terminate its Hong Kong IPO to focus on core business certainty.