Lithium carbonate prices in China fell further to CNY 577,500 per tonne from the record-high of CNY 597,500 hit November 11th, pressured by expectations of lower demand as investors eye the halt of subsidies for Chinese battery manufacturers at the start of 2023. In addition, demand is expected to slow further amid reports that cash subsidies and tax breaks for citizens purchasing electric vehicles are also expected to be canceled by the Chinese government in the upcoming months. Decarbonization goals in China and soaring demand for electric vehicles worldwide drove lithium prices to soar 108% year-to-date despite its pullback in November, underscored by an 81% yearly increase in new energy vehicle sales in October in the country. In the meantime, the US said it will grant $2.8 billion to US battery manufacturers to boost production, lifting the need for inputs. On the supply side, slower output in salt lake systems in China exacerbated battery manufacturers’ scrap for supplies.
Historically, Lithium reached an all time high of 600000 in November of 2022. Lithium - data, forecasts, historical chart - was last updated on November of 2022.
Lithium is expected to trade at 589781.25 CNY/T by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 612149.25 in 12 months time.