Mid week analysis of cobalt lithium new energy market and prices in October 2025

Mid week analysis of cobalt lithium new energy market and prices in October 2025

**Lithium Ore:**

At the start of this week, lithium ore prices saw a significant increase compared to the previous week. The spot price of lithium carbonate rose sharply, influencing lithium ore prices to follow suit. On the supply side, holders currently have low circulating lithium ore inventories and are reluctant to sell. Pricing is aligned with lithium carbonate futures, with a slight decrease in processing fees. On the demand side, there is a strong purchasing interest due to the need to maintain continuous production, leading to frequent inquiries. However, limited market circulation has resulted in only occasional small-scale transactions. In the short term, lithium ore prices are expected to remain high and stable.

**Lithium Carbonate:**

At the beginning of this week, the spot price of lithium carbonate continued to rise, with the price center moving upward. The SMM battery-grade lithium carbonate is priced between 7510-7800 yuan/ton, averaging 7655 yuan/ton, an increase of 1150 yuan/ton from the previous working day. Industrial-grade lithium carbonate is priced between 73700-74900 yuan/ton, averaging 74300 yuan/ton, also up by 1150 yuan/ton. The futures price of lithium carbonate has significantly increased, with the main contract focus shifting to a range of 79500 to 82100 yuan/ton. The operating rate of downstream material factories continues to rise, supporting demand for spot transactions. However, as prices increase, lithium salt factories are becoming increasingly hesitant to purchase, leading to a flat market transaction situation. On the supply side, the overall operating rate of lithium salt plants remains high, with both spodumene and salt lake operations exceeding 60%, serving as the main supply source. It is anticipated that lithium carbonate production in October will continue to rise, potentially breaking historical records. Demand remains robust, driven by rapid growth in the new energy vehicle market across both commercial and passenger sectors, alongside strong supply-demand dynamics in the energy storage market, which continues to boost demand for lithium battery materials. Overall, while the supply of lithium salts is steadily increasing in October, the market is experiencing significant destocking, supported by strong demand in the power and energy storage sectors.

**Lithium Hydroxide:**

At the beginning of this week, the price of lithium hydroxide saw a slight increase compared to last week. Market sentiment indicates that most lithium salt factories have limited inventory due to production being dictated by sales, resulting in a strong reluctance to sell other bulk commodities. Their pricing has followed the current rise in carbon and mineral prices.