Daily Management Review

China's lithium carbonate price falls to lowest since August 2021


According to Trading Economics, the price of lithium carbonate in China dropped to 97.5 thousand yuan ($13.64 thousand) per ton, the lowest since August 2021.

UCSD Jacobs School of Engineering
UCSD Jacobs School of Engineering
The main cause of the over 80% decline from the previous year is believed to be an increasing overstock.

Experts claim that during the customary restocking season, battery makers experience a decline in demand for lithium because of pessimistic sales of electric automobiles in the People's Republic of China. They persist in utilizing the reserves that were amassed amid the substantial subsidies provided by the Chinese government in 2021–2022.

At that, while the European Commission is examining Chinese imports of electric vehicles for possible anti-subsidy violations, other demand issues have emerged.

UBS notes that earlier expansion expenditures might result in a 40% increase in the world's lithium supply by 2024. This would make the metal's glut on the world market worse.

Key manufacturers and analysts now forecast that a shortage might not materialize until 2028 at the latest. Lithium prices jumped to 600,000 yuan a ton in November 2022 due to a long-standing prediction of a persistent worldwide shortage, but this prognosis shows a sharp change in sentiment.

source: tradingeconomics.com