Some interesting reading for you ..."
Lithium carbonate prices stabilized below CNY 97,500 per tonne in January, holding the 80% plunge from 2023 at an over three-year low, as the market somewhat found an equilibrium of ample supply and muted demand. Electric vehicle sales pessimism in China limited lithium demand for battery manufacturers, driving factories to skip their typical restocking season. Instead, firms took advantage of high inventories following the supply glut caused by extensive subsidies from Beijing throughout 2021 and 2022. EV battery sales also plateaued in the US, limiting lithium bidding as inventories remained high. The developments drove key market players to forecast the next lithium deficit to return only in 2028, an aggressive twist from speculations of persistent shortfalls that took lithium prices to CNY 600,000 in November 2022. Previous investments in increasing supply may drive global carbonate equivalent supply to jump by 40% in 2024, according to UBS, deepening the ongoing surplus."