Lithium Falls to Year-to-Date Low

Lithium carbonate prices fell past CNY 76,000 per tonne in late February, the lowest since the start of the year, amid persistent pressure from an oversupplied market.

Electric vehicle sales in China rose by 17% annually in January and accounted for over 42% of total sales as Beijing rolled new fiscal benefits attached to NEV purchases, 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.