Lithium Carbonate Supply-Demand Balance Expected to Return to Deficit

Published: Jun 22, 2022 16:03

Source: SMM

Save

And on the demand side, taking into account the rising production schedules of LFP and NMC batteries, the overall demand for battery-grade lithium carbonate will increase significantly.

SHANGHAI, Jun 22 (SMM) – According to SMM Prices, battery-grade lithium carbonate prices rose after staying sleepy for six trading days, and moved between 463,000-475,000 yuan/mt, an average of 469,000 yuan/mt and an intraday again of 1,000 yuan/mt.

The prices of industrial-grade lithium carbonate also rose to the range of 448,000-454,000 yuan/mt, an average of 451,000 yuan/mt and a daily increment of 1,000 yuan/mt.

On the contrary, prices of battery-grade lithium hydroxide were stable between 460,000-475,000 yuan/mt with an average of 467,500 yuan/mt.

In terms of spodumene concentrate, the spot prices (6%, CIF China) also ushered in a wave of hikes today to $4,790-5,030 per tonne with a single-day gain of $30/mt.

Since June, there has been a lot of news relating to lithium ore, with more than seven domestic companies having previously disclosed their respective footprints in the lithium ore sector. Among them, Sinomine Resource Group' Bikita lithium mine in Zimbabwe also held a grand opening ceremony on the afternoon of June 17. The main products of the Bikita lithium project are said to be in the production stage, mainly technical grade petalite concentrate and pollucite concentrate with high grades and low impurities.

The current lithium ore and the lithium industry chain is still heated, which is enough to attract a great number of industry players from other fields. But from the current feedback from market players from different sub-sectors, opinions on future lithium prices seem to have diverged. CATL chief scientist Wu Kai said that lithium ore supply, from a global perspective, is sufficient, and the current price hike is largely the result of speculation. He believes that the soaring lithium carbonate prices is harmful to the health of the industry. In order to change the situation, it is necessary to enhance the self-supply capacity of lithium ore in China considering its heavy dependence on imports. Meanwhile, the recycle market shall also be given equal important.

SMM estimates that the battery-grade lithium carbonate production will be about 16,800 mt in June, a small increase compared with May. And on the demand side, taking into account the rising production schedules of LFP and NMC batteries, the overall demand for battery-grade lithium carbonate will increase significantly. It is expected that the overall battery-grade lithium carbonate demand will increase by 17% in June.

To sum up, lithium carbonate supply-demand balance will return to deficit.

Spot Market

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

May 1, 2026 07:00

India to build a six-month strategic stockpile of lithium, cobalt and rare earths as demand rises

Amid sustained demand growth, India plans to build a strategic reserve of critical minerals including lithium, cobalt, nickel, copper and rare earths. The stockpile will be sized to cover six months of domestic consumption, aiming to guard against risks of global supply disruptions and sharp raw material price volatility. Led by India’s Ministry of Mines and Ministry of Heavy Industries, the reserve covers key raw materials essential for new energy vehicles, energy storage and the electronics sector, fields where India currently relies heavily on imports. At present, the United States, China, South Korea and other countries have already established strategic reserve systems for critical minerals.

May 1, 2026 07:00

Apr 30, 2026 23:00

[Geely's Gan Jiayue: Zeekr 9X to enter markets in the Middle East, Central Asia, and Europe from Q3]

On April 29, during Geely's Q1 2026 results conference, Gan Jiayue, CEO of Geely Auto Group, stated that the Zeekr 9X will be exported to the Middle East in June, launched in Central Asia in Q3, and enter the European market in Q4. Gan also revealed that the Zeekr 8X will be promoted in overseas markets from Q4 this year to Q1 next year. Data shows that in the first quarter, deliveries of the Zeekr 9X reached 22,000 units.

Apr 30, 2026 23:00

Apr 30, 2026 22:55

[LG Energy Solution posts Q1 operating loss of 207.8 billion won]

LG Energy Solution reported consolidated revenue of 6.6 trillion won in the first quarter, up 1.2% quarter-on-quarter (including approximately 189.8 billion won in North American production incentives). During the same period, it recorded an operating loss of 207.8 billion won. Shipments of pouch-type electric vehicle (EV) batteries declined due to inventory adjustments by major North American customers.

Apr 30, 2026 22:55