SHANGHAI, Sep 6 (SMM) – Poor demand in the battery industry continued to weigh on the market for lithium salt, especially for lithium carbonate.

While downstream purchases from cathode materials producers picked up, overall consumption remained sluggish as of Thursday September 6. 

As of Thursday September 6, SMM assessed prices of domestic battery-grade 99.5% lithium carbonate at 83,000-88,000 yuan/mt, down 3,000 yuan/mt from last Thursday. Prices fell an average of 82,000 yuan/mt from the end of 2017, when the market began its decline.

A supply glut also accounted for the declining market. At the end of 2017, overall capacity across China's top 25 power battery companies stood at 144.3Gwh, according to a report by research institution EVTank. The figure exceeded demand for power batteries this year, which is expected at 51Gwh, with production of new-energy vehicles estimated at 1.1 million units, showed the report.