Facts
Lithium carbonate prices in China fell to 472,500 per tonne in February, the lowest since June 2022 and over 20% down since their all-time high of CNY 600,000 in November, as stronger supply and expectations of lower demand drove industry players to bet on a market surplus this year. Added capacity pushed Chinese domestic production to soar by 89% year-on-year in December and by 32.5% in the whole of 2022 despite output cuts in lake-based smelters. Additionally, top producer Australia projected global output of lithium carbonate equivalent to reach 915,000 tonnes in 2023, a 32% rise from 2022’s estimate. Meanwhile, electric vehicle sales in China are set to decline sharply after the world’s leading consumer stopped subsidies in the sector.
Take a look at the 1 year chart. Tells the tale.