Lithium carbonate has hit a bottom in the stage. On July 26th, lithium carbonate (99.5% battery grade/domestic) remained unchanged at 84800 yuan/ton.

In the next two years, the production of lithium mines and salt lakes is expected to increase significantly, and the situation of oversupply in the lithium carbonate market is difficult to change. 

The proportion of global lithium carbonate oversupply this year is about 14%, and this proportion may further increase next year.

 From a more macro perspective, we are currently in a cycle of increasing production of lithium carbonate, 

and the launch of new projects and the increase in production will limit the extent of the rebound in lithium carbonate prices. 

In the future, it may be necessary to adjust the supply-demand balance by driving high cost production capacity out of the market through price declines.

In the short term, although lithium prices have fallen to a lower level and the market's response to negative news has weakened, the game between long and short sides in the market remains fierce. 

Before mid August, the demand for lithium carbonate was in the off-season, while the supply remained at a relatively high level. 

The centralized cancellation of warehouse receipts at the end of July may also put pressure on the spot market, and it is expected that lithium prices will show a fluctuating and weak trend. 

In mid to late August, with the gradual recovery of downstream demand, the arrival of the peak season may have a certain driving effect on the price of lithium carbonate, and lithium prices may rebound.

 However, in the context of oversupply, it is expected that the space for rebound will be limited.

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According to the latest quotation from Shanghai Nonferrous Network, on July 26th, lithium carbonate (99.5% battery grade/domestic) remained unchanged at 84800 yuan/ton, 

with a cumulative drop of 1620.0 yuan in the past 5 days and 13710.0 yuan in the past 30 days;

 Lithium hydroxide (56.5% battery grade coarse particles/domestic) fell 100.0 yuan to 79100 yuan/ton, hitting a new low in over 3 years.

 It has fallen for 4 consecutive days, with a cumulative drop of 2020.0 yuan in the past 5 days and 9400.0 yuan in the past 30 days

Today's spodumene (in stock in China)

Lithium pyroxene 5-5.5%: 6840-7925, average price 7382.5, down 95 yuan/ton

Lithium pyroxene 4-5%: 4900-6840, average price 5870, down 57.5 yuan/ton

Lithium pyroxene 3-4%: 3025-4900, average price 3962.5, down 27.5 yuan/ton

Today's lithium compounds

Lithium carbonate (battery grade): 84850 yuan/ton, down 0 yuan/ton

Lithium carbonate (industrial grade): 79900 yuan/ton, down 0 yuan/ton

Lithium hydroxide (industrial grade): 71550 yuan/ton, down 150 yuan/ton

Lithium hydroxide (battery grade coarse particles/domestic): 79100 yuan/ton, down 150 yuan/ton

Lithium hydroxide (battery grade micro powder type/domestic): 84800 yuan/ton, down 150 yuan/ton

Today's lithium mine

Lithium pyroxene concentrate (6%, CIF China): $939/ton, down $2/ton

Australian spodumene concentrate (6%, CIF China): $945/ton, down $5/ton

Brazilian spodumene concentrate (6%, CIF China): $925/ton, down $0/ton

Lithium mica (Li2O: 1.5% -2.0%): 1240 yuan/ton, down 15 yuan/ton

Lithium mica (Li2O: 2.0% -2.5%): 1910 yuan/ton, down 15 yuan/ton

Phosphate lithium aluminate (Li2O: 6% -7%): 8185 yuan/ton, down 30 yuan/ton

Lithium aluminate phosphate (Li2O: 7% -8%): 10045 yuan/ton, down 30 yuan/ton

Lithium Metal (Week) July 26th

Lithium metal (≥ 99%, industrial and electrical/domestic): 75500 yuan/ton, down 0 yuan/ton

Phosphate ore

Phosphate ore: 1060 yuan/ton, up 0 yuan/ton

Cobalt metal

Electrolytic cobalt (≥ 99.8%/gold, zan): 23000 yuan/ton, down 500 yuan/ton

Cobalt powder (-200 mesh/domestic) 194500 yuan/ton, down 500 yuan/ton

Electrolytic copper

1 # Electrolytic copper 74290 yuan/ton, up 1090 yuan/ton

The information is sourced from Shanghai Nonferrous Metals Network, Changjiang Nonferrous Metals Network, etc. The prices are for reference only

Lithium Battery News

1. The policy of exchanging old cars for new ones has been implemented beyond expectations: raising the subsidy standards for scrapping and updating cars

The National Development and Reform Commission and the Ministry of Finance have issued the "Several Measures to Strengthen Support for Large scale Equipment Renewal and Consumer Goods Trade in".

The document proposed that "we should make overall arrangements for about 300 billion yuan of ultra long term special treasury bond funds to strengthen support for large-scale equipment renewal and consumer goods trade in".

 Automobiles are an important area of support for the trade in policy. 

It is also mentioned that based on the "Implementation Rules for Subsidies for Replacing Old Vehicles with New Vehicles" (Shang Consumer Letter [2024] No. 75),

 individual consumers who scrap National III and below emission standard fuel passenger vehicles or new energy passenger vehicles registered before April 30, 2018 (inclusive),

 and purchase new energy passenger vehicles included in the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" or 2.0-liter and below displacement fuel passenger vehicles,

 the subsidy standards will be increased to 20000 yuan for purchasing new energy passenger vehicles and 15000 yuan for purchasing 2.0-liter and below displacement fuel passenger vehicles.

2. Honda announces closure of two factories in China

Honda announced on the 25th that it will close a joint venture factory in Guangzhou in October, and another factory in Wuhan, Hubei Province will cease production from November. 

Honda will reduce China's annual production capacity of gasoline cars from 1.49 million to 1 million through measures such as closing factories. 

This production reduction by Honda will set a record for the largest scale among Japanese car companies.

3. Ford earns $1.8 million in Q2 profit

Ford's second quarter profit was only $1.8 million, or 46 cents per share, a decrease from $1.9 million and 47 cents per share in the same period last year.

 Ford stated that its performance includes a pre tax profit loss of $1.1 billion for its electric vehicle division. 

The company explained that the first generation of electric vehicles faced sustained pricing pressure across the industry, and wholesale prices were also relatively low.

 In addition, with a loss of $1.3 billion in the first quarter, Ford executives expect pre tax losses for the electric vehicle business to reach $5.5 billion this year. 

The reason is the persistent price pressure and investment in the next generation of electric vehicles.

4. Stellantis CEO: Ready to face Chinese electric vehicles in Europe

Automobile giant Stellantis has stated that it will fully respond to the strong impact of Chinese electric vehicles on the European market.

 At the opening ceremony of the new electric vehicle production line in Serbia, CEO Carlos Tavares said, "We will face brutal challenges from Chinese car companies in the European market,

 but Stellantis is ready to fight