Lithium Drops to 5-Month Low
2026-07-22 15:03
By
Andre Joaquim
1 min. read
Lithium carbonate prices fell below CNY 145,000 in July, their lowest in five months, as obstacles to consumption combined with higher global supply.
China said it would end tax exemptions for lithium-ion batteries to rein in a race to the bottom between manufacturers.
Industry reports in China indicated that competition between EV battery producers to retain market share drove companies to increase their production schedules, leading to higher lithium sourcing before the announcement.
In turn, CATL's Jianxiawo mine, among the largest in the world, cleared security permits to restore activity following its prolonged suspension.
On top of that, higher lithium prices since the start of the year drove Australian miners to restore operations.
Mineral Resources will restart its Bald Hill lithium mine following an 18-month suspension, while Core Lithium restarted its Finniss project, making up for shortages elsewhere.