Lithium carbonate prices to continue rally amid falling inventories

Published: Nov 23, 2020 15:00

Save

Prices of battery-grade lithium carbonate have been climbing steadily recently.

SHANGHAI, Nov 23 (SMM) — Prices of battery-grade lithium carbonate have been climbing steadily recently. Supply of industrial-grade lithium carbonate declined in Qinghai, where suppliers hardly have any inventory at hand and will delay shipments to the end of the month, encouraging them to raise offers to around 39,000-40,000 yuan/mt. Sales of substandard industrial-grade lithium carbonate in Jiangxi have been brisk recently, with the price around 40,000 yuan/mt. As the demand for LFP increases, the price of substandard industrial-grade lithium carbonate is likely to rise.

China lithium carbonate prices

Data source: SMM, E: estimate

Some small and medium-sized producers sold battery-grade lithium hydroxide at levels close to those of industrial-grade lithium hydroxide. In contrast, major lithium hydroxide producers reported stable sales as they are qualified to enter the mainstream high-nickel industry chain and intend to hike offers amid rising lithium carbonate prices. This has intensified market polarisation.

Price polarisation in lithium hydroxide market to last until Q1 2021

Data source: SMM, E: estimate

For more information on the cobalt and lithium sectors, please subscribe to China Cobalt & Lithium Weekly Report.

Lithium carbonate

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

Solid-State Battery 202602： Rumors of Testing ; Multiple Enterprises Rapidly Rolled Out Pilot-Scale Validation

In February 2026, the solid-state battery industry accelerated its transition from pilot-scale trials to mass production, with sulphide electrolytes becoming the primary technological focus, and the national standard set to be released in July. Pilot lines such as those of Guoci Materials and Xinjie Energy were commissioned in rapid succession; 500 Wh/kg high-energy-density products were released one after another, and demand for dry-process electrode equipment surged.

2 hours ago

SMM Daily Review: Spot Lithium Carbonate Prices Fell Sharply on March 3

[SMM Daily Review: Spot Lithium Carbonate Prices Fell Sharply on March 3] The SMM battery-grade lithium carbonate index price fell sharply from the previous working day. Futures side, after the most-traded contract opened at 170,000 yuan/mt in the morning session, it fluctuated downward throughout the session and at one point touched the limit-down price of 150,800 yuan/mt. It then rebounded slightly and hovered around 154,000 yuan/mt, but weakened again after the midday session and ultimately stayed locked at limit-down through the close. Open interest in the most-traded contract fell by about 39,000 lots from the previous trading day. Actual transactions, upstream lithium chemical plants’ willingness to sell spot orders remained weak, with a clear sentiment to hold back sales. After prices fell rapidly in the morning, downstream material plants’ purchase willingness strengthened markedly, and most enterprises adopted a laddered order-placement strategy to buy on dips. Overall, market inquiries were active and transaction momentum increased significantly.

2 hours ago

3 hours ago

POSCO Holdings to Begin Commercial Operations at Argentina Lithium Brine Project

According to industry sources on the 3rd, POSCO Argentina, a subsidiary of POSCO Holdings, will commence operations of the first-phase lithium brine plant by the end of this month, despite partial delays caused by supply issues involving key replacement components. Initial utilization rates are expected to start at around 60%, with full-scale operations targeted after the third quarter following equipment optimization and operational improvements. The company anticipates reaching near full capacity from July to August.

3 hours ago