Lithium carbonate prices in China rose to a record-high 501,500 yuan/tonne in September, soaring over 80% year-to-date as surging demand coincides with lower supply. Added stimulus and cash incentives by local Chinese governments spurred growth in demand of electric vehicles in the world’s second largest economy, notching a 100% year-on-year increase in August. In the US, demand for electric vehicles is set to increase as the newly passed “Inflation Reduction Act” extends tax breaks for new electric vehicle purchases. On the supply side, the energy crisis in China brought by record-setting heat waves led multiple lithium producers in Sichuan to suspend operations, adding to the upside of soaring lithium costs in the near-term. Scarcity led auto manufacturers with large bets on battery electric vehicles to compete for long-term supply contracts, including Ford and Stellantis. Also, electric vehicle giant Tesla mulled building its own lithium refinery in Texas.
Historically, Lithium reached an all time high of 504000 in September of 2022. Lithium - data, forecasts, historical chart - was last updated on September of 2022.
Lithium is expected to trade at 507668.45 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 526625.15 in 12 months time.