Lithium prices yes it matters !!
Lithium carbonate prices rose above the CNY 315,000 per tonne level in June, the highest in three months to extend the rebound from the 19-month low of CNY 165,500 at the end of April amid robust demand for battery inputs. The latest data showed that NEV sales in China jumped by 60% year-on-year in May, extending the 110% surge in April and marking nearly one-third of the market share, erasing concerns about poor demand levels at the start of the year. During the first quarter, the drop in demand coincided with a significant oversupply of batteries. Producers took advantage of final inflows of government subsidies and ramped up production until the end of 2022, creating unsustainably high inventory levels. Robust expectations for longer-term demand also supported lithium prices, as government incentives to switch to EVs lead analysts to forecast that lithium demand by 2040 will be 16 times higher than present-day levels.