Post by
Rinny1 on Dec 20, 2022 1:48pm
China and lithium
Lithium carbonate prices in China fell to CNY 553,500 per tonne in December, the lowest in eight weeks and extending the decline from the record-high of CNY 597,500 touched in November as demand expectations continue to worsen and supply projections remain steady. Chinese authorities are set to cancel new energy subsidies for battery manufacturers in January, significantly driving down demand for the key input material. At the same time, local Chinese governments will likely halt cash subsidies for citizens purchasing electric vehicles, expected to significantly slow sales in the world’s top consumer. On the supply side, mining giants continued to secure contracts in Australia and South America to offset bottlenecks in China, driving industry players to project that the lithium market could return to a surplus in 2023. Still, decarbonization goals in China and a wave of electric vehicle sales drove lithium prices to double year-to-date, despite its pullback since mid-November.
Comment by
monkeyhere171 on Dec 20, 2022 2:23pm
Chinese subsidies may end but it should be noted that thr US will kick in after the new year and it should even boost the NA production in order to qualify for the incentives