Cobalt and lithium material prices for lithium battery fell across the board in December 2023

In December 2023, all cobalt product prices fell, with cobalt sulphate and chloride down 12% and 15% MoM.
Cobalt sulphate saw rising stocks due to demand not meeting forecasts, causing clear market oversupply. Despite lower finished goods prices, smelters' costs outpaced sales, driving cuts and stock reduction. Year-end capital needs also led to discounting, further depressing December prices.

Battery-grade lithium carbonate prices fell 26.5% in December 2023.
Supply side, increased contract production from spodumene and lepidolite companies, stock clearing, and warehouse deliveries boosted supply. China's domestic production rose 2.08% MoM to 44,000 mt. Chile's 13,592-mt November export to China was due in December, keeping supplies high. To meet year-end targets, some lithium salt firms are selling at lower prices, keeping market selling pressure high. Demand side caution due to falling lithium carbonate prices and order cuts led cathode makers to wait-and-see. December's ternary material and LFP outputs fell by 53,000 mt (4.81%) and 95,000 mt (16.66%), respectively. High inventory-to-sales ratios pushed battery firms to focus on de-stocking, reducing battery production further. December saw a domestic battery production drop of 11.66% to 69.04 GWh. High supply and weak demand drove another lithium carbonate price drop in December.