Prices for lithium carbonate equivalent (LCE) are unlikely to recover this year, according to market participants, owing to high inventories and Chinese overcapacity.
How much does lithium carbonate cost?
In 2022, the average price of battery-grade lithium carbonate stood at 68,100 U.S. dollars per metric ton. This figure is by far the highest price for battery-grade lithium carbonate recorded in the period of consideration. For 2023, lithium carbonate price was estimated at 46,000 U.S. dollars per metric ton.
Battery-grade lithium carbonate has fallen more than 10 percent compared to mid-November when prices reached as high as RMB 590,000 per ton. A month ago, CnEVPost noted that lithium prices seemed to be losing momentum to rise even higher. Now, what has happened seems to bear this out.
Compared to mid-November, when the price was as high as RMB 590,000 per ton, battery-grade lithium carbonate has fallen by more than 10 percent. The continued decline in lithium carbonate prices is due in part to the fact that China's new energy vehicle (NEV) industry is facing a bleaker outlook than it did in the first half of the year.
Will lithium carbonate equivalent (LCE) prices recover this year?
Explore a selection of news stories related to this one. Prices for lithium carbonate equivalent (LCE) are unlikely to recover this year, according to market participants, owing to high inventories and Chinese overcapacity.
Prices are currently far below highs of $80,000/t in late 2022, although not at record lows by historical standards. "We have put our lithium plant in Zimbabwe on ice for now, margins are just too tight," a southern Africa-based producer said.
Will the lithium market recover in 2026?
"We have put our lithium plant in Zimbabwe on ice for now, margins are just too tight," a southern Africa-based producer said. The market could start to recover in the second half of 2026 as carmakers turn increasingly towards lower-cost lithium iron phosphate (LFP) batteries, SC Insights said.