Lithium Declines from 1-Month High

2026-03-05 16:25 By Andre Joaquim 1 min. read

Lithium carbonate futures in China fell to CNY 155,000 per tonne from the one-month high of 175,000 from late February amid signs of a pullback in demand.

New data showed that electric vehicle sales by top Chinese manufacturer BYD tanked 40% annually in February, a reversal from the growing trend in the previous months to raise concerns that the Chinese EV market may be slowing.

The data magnifies worries that higher energy costs due to war in the Middle East could hamper large manufacturers from building input goods inventories, driving industrial metals to pull back.

Still, Chinese supply was also expected to remain muted due to Beijing's anti-involution campaign.

Authorities have already canceled 27 mining permits in the lithium hub of Jiangxi, aligned with the earlier suspension of activity in CATL's Jianxiawo lithium mine.

Also, Zimbabwe suspended exports of lithium concentrates to put pressure on consumers to set up their refining operations in the country.



News Stream
Lithium Declines from 1-Month High
Lithium carbonate futures in China fell to CNY 155,000 per tonne from the one-month high of 175,000 from late February amid signs of a pullback in demand. New data showed that electric vehicle sales by top Chinese manufacturer BYD tanked 40% annually in February, a reversal from the growing trend in the previous months to raise concerns that the Chinese EV market may be slowing. The data magnifies worries that higher energy costs due to war in the Middle East could hamper large manufacturers from building input goods inventories, driving industrial metals to pull back. Still, Chinese supply was also expected to remain muted due to Beijing's anti-involution campaign. Authorities have already canceled 27 mining permits in the lithium hub of Jiangxi, aligned with the earlier suspension of activity in CATL's Jianxiawo lithium mine. Also, Zimbabwe suspended exports of lithium concentrates to put pressure on consumers to set up their refining operations in the country.
2026-03-05
Lithium Rebounds Toward 2-Year High
Lithium futures in China were above CNY 170,000 per tonne, approaching the over-two-year high of CNY 181,000 touched on January 26th, tracking the positive momentum for industrial metals on signs of robust demand and fresh risks to supply. Zimbabwe suspended exports of lithium concentrates and other raw materials to increase its pressure on consumers to set up their refining operations in the country. This extended supply pressure as Chinese authorities canceled 27 mining permits in the lithium hub of Jiangxi, aligned with the earlier suspension of activity in CATL's Jianxiawo lithium mine amid Beijing's anti-involution campaign. Demand remained supported by Chinese investment in power infrastructure, recently exemplified by the announcement of higher power storage spending. This was combined with Beijing stating it would double national EV charging capacity to 180 gigawatts by 2027, supporting lithium-rich energy storage systems.
2026-02-25
Lithium Extends Plunge from 2-Year High
Lithium carbonate futures sank to CNY 145,000 per tonne, from the over two-year high of CNY 180,000 on January 26th, tracking the aggressive pullback in speculative metals as markets reconsidered the demand from power storage investments in major economies. Chinese authorities lowered export rebates for battery producers from April, driving manufacturers to front-run lithium orders. In the meantime, ambitious bets in power and datacenter infrastructure by the Chinese government was combined with the announcement of higher power storage spending, supporting the outlook for lithium and other battery metals. This was combined with Beijing stating it would double EV charging capacity to 180 gigawatts by 2027, supporting lithium-rich energy storage systems. Meanwhile, authorities stated 27 mining permits were canceled in the lithium hub of Jiangxi, aligned with the earlier suspension of activity in CATL's Jianxiawo lithium mine amid Beijing's anti-involution campaign.
2026-02-05