Lithium carbonate prices have remained stable since hitting a more-than-three-year low of CNY 71,500 per tonne in late October, as overcapacity in China’s electric vehicle (EV) battery sector led producers to lower input prices across the supply chain.
Lithium carbonate prices remain stable
Government subsidies in China sparked a significant oversupply of EV batteries, contributing to a 23% decline in carbonate prices this year, following an 80% drop in 2023. Despite the surplus, market participants expect global supply to increase by nearly 50% this year, driven by hopes of eventual market balance, prompting producers to seek new projects.
Chile plans to double its output
Chile has announced plans to double its output over the next decade, while China has expanded its battery metal projects in Africa. Additionally, Rio Tinto made a move into the lithium market by acquiring US-based Arcadium Lithium for $6.7 billion. Adding to the downward pressure, the EU imposed tariffs on China-based EV manufacturers ranging from 17% to 36.3%.
