What’s The Outlook For Lithium Ore Market Amid Temporarily Stabilizing Lithium Carbonate Price?

Published: Jan 5, 2024 11:02

Source: SMM

Save

Lithium, crucial for the energy shift and EV market, is key in supply and demand. Although the domestic price of lithium carbonate has shown temporary signs of stabilization in recent days, the outlook for lithium ore is still bleak.

The current domestic inventory of lithium ore remains high, which exerts additional downward pressure on prices. Despite buyers' willingness to enter the market, their expectations of further declines in lithium prices have led to them offering highly competitive low bids. Lithium ore sellers, pressured by fierce bargaining, prefer to wait for market conditions to improve.

Traders cut back on importing African lithium ore as mine owners rejected low prices. With a 2-3 month shipping time to China and transit risks, interest in year-end imports has waned.

Australian mines have adjusted strategies due to low lithium ore prices nearing some mines' cost lines. Australian mining company Core Lithium has initiated a strategic review in response to the significant downturn in lithium market conditions. The recent price decline has prompted it to explore various cost-cutting and productivity-enhancing measures. These include potentially curtailing operations temporarily, seeking commercial solutions, and trimming exploration and other discretionary spending. The strategic review will focus on maintaining business value as well as future options. In line with this objective and the need to reduce expenses, Core Lithium has halted early works at the BP33 site near Darwin.

SMM believes that the production of lithium mines in Australia will remain stable overall in the short term as production cutbacks would hurt cash flows and potentially risk share prices. Since holding onto cargoes would incur warehousing costs, mines are still willing to sell. SMM survey shows that prices of Australian spodumene (SC6) shipped in December are already close to $1,000/mt. The ongoing price downturn is set to persist.

Market forecast Market review

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 for 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

SMM Daily Review: Spot Lithium Carbonate Prices Drifted Lower on August 19

SMM battery-grade spot lithium carbonate prices drifted lower today compared to the previous working day. The lithium carbonate 2701 contract opened lower at 154,400 yuan/mt, then moved lower amid fluctuations. During the morning session, it fluctuated between 151,000 and 153,000 yuan/mt, rebounding at times but failing to break above the average price line. Near midday, bears continued to pressure the market, causing prices to drift lower. In the afternoon, it accelerated down to 149,100 yuan/mt, hitting a new intraday low, before rebounding slightly. In the late session, it moved sideways in a narrow range of 150,500–150,700 yuan/mt, eventually closing down 3.01% at 150,700 yuan/mt, with open interest increasing by 4,347 lots. In the spot market, the drifting lower lithium carbonate prices significantly bolstered downstream willingness to restock at lower prices. Some downstream enterprises with plans for just-in-time procurement this week, who had remained on the sidelines in previous sessions due to relatively high-level prices, concentrated their buying volume release today during the price correction window. Upstream, the pace of spot order shipments from lithium chemical plants remained stable, and plants undergoing maintenance continued to prioritize fulfilling long-term contract orders to secure supply. Overall, the market inquiry atmosphere was heated, and actual trading activity was relatively high.

2 hours ago

4 hours ago

[Lithium Battery: Weilan Lithium Core Releases H1 2026 Performance Report]

On August 18, Weilan Lithium Core released its semi-annual performance report for 2026. During the reporting period, the company's core business continued to maintain a favorable operating condition, achieving total operating revenue of 4.858 billion yuan, a year-on-year increase of 30.35%; net profit was 555 million yuan, a year-on-year increase of 50.07%. Regarding the performance growth, Weilan Lithium Core attributed it to the competitiveness of its products and the increase in downstream demand, with its lithium battery business growing rapidly year-on-year. In the first half of 2026, Weilan Lithium Core's lithium battery business experienced rapid growth, with the lithium battery segment achieving operating revenue of 2.527 billion yuan, a year-on-year increase of 58.43%; the gross profit margin was 22.84%.

4 hours ago

[Lithium Battery: LG Energy Solution's Lansing, Michigan Battery Factory Officially Commences Production]

On August 18, LG Energy Solution announced that its new battery factory in Lansing, Michigan, USA, has officially started production. The project represents a total investment of over $2 billion and will produce both energy storage and automotive power batteries, further expanding the company's local battery supply capabilities in North America. The factory spans 226 acres and, at full production capacity, will have an annual battery output exceeding 35 GWh. The products are divided into two main tracks: one track produces lithium iron phosphate (LFP) cells for grid-scale and commercial & industrial energy storage applications. These cells will be integrated into complete energy storage systems by LG Energy Solution's US energy storage division, Vertech, with Detroit-based energy company DTE Energy becoming a downstream customer for the factory's energy storage batteries. The other track produces high-energy-density nickel-manganese-cobalt (NMC) batteries exclusively for Toyota, which will be used in the 2027 Toyota Highlander all-electric model, supporting Toyota's electric vehicle supply chain development in the United States.

4 hours ago