Lithium carbonate price reversal begins 2025year 27th July

Lithium carbonate price reversal begins 2025year 27th July 

ClPC (China Lithium Products Technology Co., Ltd.)

On July 23rd, battery grade lithium carbonate rose by 1100 yuan/ton in a single day, with an average price of 69100 yuan/ton and a highest price exceeding 70000 yuan/ton. Taking the high cost lithium supply cost line of 65000 yuan as a reference, the spot of battery grade lithium carbonate has officially shown signs of a "V-shaped" reversal after two months of bottoming out since May Day. In terms of lithium carbonate futures, the main contract has risen sharply since July 17th, closing up 2.47% to 67960 yuan/ton on July 17th, and closing at 73000 yuan/ton on July 22nd, with the highest increase reaching 74000 yuan during this period. In July, several lithium salt listed companies successively released performance forecasts, and the overall situation has significantly improved compared to the "huge loss" in 2024. Companies with good conditions have begun to turn losses into profits. Due to the disruption caused by the shutdown and maintenance of lithium salt factories on the supply side, the supply of lithium carbonate has tightened, and the market has begun to have stronger expectations for a reversal in lithium prices. In the secondary market, the performance is evident, with the energy metal sector, especially lithium related listed companies, experiencing consecutive trading days of gains. Lithium carbonate has shown significant improvement in terms of price, corporate performance, and market expectations. Upon closer examination of the actual supply and demand pattern of lithium, although the situation of oversupply in lithium supply and demand has not yet been reversed, the clearing price of lithium carbonate is gradually being pushed up. Behind this is the peak of low-cost lithium salt resources, and the weight of high cost lithium mines participating in supply is gradually increasing, leading to marginal costs and pushing lithium prices out of the "cash loss" range of 65000 yuan, in search of a new price equilibrium point. Recently, lithium carbonate futures prices have shown a continuous upward trend. On July 25th, the main contract of lithium carbonate futures hit the daily limit up and closed, touching 80520 yuan/ton. In terms of spot goods, the latest data from SMM shows that on July 25th, the average price of battery grade lithium carbonate has rebounded to 72900 yuan/ton, an increase of 2350 yuan/ton from the previous trading day. Mr. Peter lee , a partner of China Lithium Products Technology Co., Ltd , stated in an interview with reporters that the recent increase in lithium carbonate prices is mainly due to the combined effects of policy guidance, supply adjustment, and demand improvement. At the policy level, multiple departments are working to rectify industry chaos, promote overcapacity reduction, and at the same time, the National Reserve is reducing market circulation by collecting and storing resources, enhancing its strategic position. On the supply side, news of mining companies' rectification, shutdown, and maintenance have triggered expectations of supply contraction, and prices have previously fallen below the cost line, indicating a strong willingness of manufacturers to raise prices. On the demand side, the new energy vehicle and energy storage markets continue to grow, especially with the explosive growth of energy storage installed capacity, driving the demand for lithium carbonate. Recently, the sixth meeting of the Central Financial and Economic Commission proposed to promote the orderly exit of outdated production capacity. Subsequently, industries such as photovoltaics, steel, and cement have started to reduce production, while the lithium battery industry has accelerated capacity clearance following policy guidance.