Lithium charge weakens
January 3, 2023Trading Economics report lithium carbonate prices in China fell to CNY 519,500 per tonne in early January, the lowest since October.
The fall has been attributed to stronger supply expectations and signs of increasingly low demand driving industry players to project the lithium market will return to a surplus this year.
The sentiment has been fuelled by soaring Covid cases in China and the consequent slowdown in its economy are expected to cool the surges in electric vehicle sales ahead of the next year.
Meanwhile, Chinese authorities are set to cancel new energy subsidies for battery manufacturers this month, significantly driving down demand for the key input material.
It is somber news for Australia, the world’s top producer of lithium expecting global output of lithium carbonate equivalent production to total 915,000 tonnes next year, a 32% rise from 2022’s estimate.
Also, mining giants continued to secure contracts in Australia and South America to offset bottlenecks in China. Still, decarbonization goals and a wave of electric vehicle sales drove lithium prices to nearly double in 2022.
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