Lithium Extends Pullback from 1-Month High

Lithium carbonate prices fell toward CNY 76,000 per tonne after holding near the one-month high of CNY 77,900 since late January amid the view that the battery market remains oversupplied.

Electric vehicle sales in China picked up at the turn of the year as Beijing rolled new fiscal benefits for Chinese households to buy new energy vehicles, but the outlook that battery inventories for manufacturers will remain elevated limited the urgency for EV manufacturers to start new supply contracts.

This is due to lithium miners refraining from closing operations to retain market share and business relationships with governments and battery producers.

Such developments were lastly underscored by CATL reopening a lithium mine in the Jiangxi province following its IPO in Hong Kong, while Ganfeng Lithium started its newest mining project in Salta, Argentina.

Additionally, Rio Tinto aimed to enter the lithium market by buying US-based Arcadium Lithium for $6.7 billion.