Lithium Carbonate Prices Exceeded 500,000 yuan/mt Lithium Metal Prices Soared by 100,000 yuan/mt

SHANGHAI, Mar 10 (SMM) - The SMM spot prices of domestic battery-grade lithium carbonate gained 2,000 yuan/mt to 497,000-505,000 yuan/mt on March 10. Since the beginning of the year, the average spot price of domestic battery-grade lithium carbonate has increased by 223,000 yuan/mt or 80.22%.

The spot prices of battery-grade lithium hydroxide climbed to 476,000-483,000 yuan/mt today, with the average price up by 4,000 yuan/mt. Since the beginning of the year, the average spot price of domestic battery-grade lithium hydroxide has increased by 257,000 yuan/mt or 115.51%.

The spot quotations of metal lithium increased to 2.95-3.01 million yuan/mt, with its average price up by 100,000 yuan/mt. Since the beginning of the year, the average spot price of lithium metal has risen by 1.59 million yuan/mt or 113.91%.

The price increase in lithium carbonate has slowed down significantly since the beginning of March. This is mainly because downstream buyers had basically completed their monthly purchases last week and others were unwilling to buy at the current high prices.

SMM data showed that China’s lithium carbonate output fell 2% MoM to 18,609 mt in February due to the Spring Festival, maintenance by some producers and a shorter month, but an increase of 51% year-on-year. 

With the completion of maintenance, ramp-up in new capacity and warmer weather in Qinghai, it is expected that the supply of lithium carbonate may recover significantly in March. The domestic lithium carbonate output is expected to rise 27% MoM to 23,581 mt in March.

There were reports that many battery makers refrained from buying against the surge in lithium carbonate prices. However, CATL denied the report while EVE Energy said that its current production schedules are normal.

Ganfeng Lithium, the leading lithium mining company, said that battery makers were still buying goods and that it was still running at full capacity.