Last week, as market sentiment cooled, lithium carbonate futures prices pulled back, falling below 70,000 yuan/mt again.

[China Machinery Industry Federation: MIIT to Issue Work Plans for Stabilizing Growth in Machinery, Automotive, and Power Equipment Industries]

Polaris Energy Storage Network learned that, according to the data released by the China Automotive Battery Innovation Alliance for the period from January to June, the cumulative domestic power battery installations reached 299.6 GWh, representing a cumulative year-on-year (YoY) increase of 47.3%.

The global competition for critical minerals has reached unprecedented levels in 2025, with major powers implementing aggressive strategies to secure supply chains essential for clean energy technologies, defense systems, and advanced electronics.

SMM's monthly production data for base metals is released at the end of each month, aiming to uncover the true fundamentals for industry chain professionals and investors, and providing a clearer grasp of the future direction of the metals market.

In July 2025, SMM's ternary cathode material production rose by 5.75% MoM and increased by 16.65% YoY.

This week saw price increases for salt products like cobalt sulfate and lithium carbonate, although lithium carbonate prices declined after prior gains, resulting in overall oscillating movements. Coefficients for nickel and cobalt in ternary (NCM/NCA) and lithium cobalt oxide (LCO) black mass remained largely flat, with the lithium coefficient experiencing a slight dip following the drop in lithium carbonate prices

Overall data analysis indicates stable underlying demand support in the energy storage sector by the end of July, bolstered by mid-year factors and various policies both domestically and internationally. Rising lithium carbonate prices have driven an increase in battery cell prices. Meanwhile, the surge in automotive sales stimulated by auto shows earlier in July gradually subsided, with the new energy vehicle market penetration rate stabilizing. Currently, terminal consumer demand lacks momentum, although some incremental growth is expected. Similar to the energy storage sector, rising prices for cathode materials driven by higher lithium carbonate costs have been passed on to power battery cells, resulting in a slight price increase. In terms of market transactions, activity remained subdued by the end of July. Some second-life battery manufacturers maintained minimal inventory, adhering to a procurement strategy based on immediate needs. Looking ahead to August, demand in both the power and energy storage markets has potential for further decline.

The chosen refinery site on Mission Island, previously home to a decommissioned power station, will have an annual output of 20,000 tonnes of lithium hydroxide (LCE)—sufficient to power half a million EVs yearly.