According to the Commodity Market Analysis System of Shengyi Society, domestic lithium carbonate prices continued to bottom out and fluctuate in mid January. As of January 15th, the price of industrial grade lithium carbonate in China was 76300 yuan/ton, an increase of 0.39% from last week’s 76000 yuan/ton and a decrease of 2.18% from the same period last month’s 78000 yuan/ton; The domestic price of battery grade lithium carbonate is 79100 yuan/ton, up 0.64% from 78600 yuan/ton last week and down 1.62% from 80400 yuan/ton in the same period last month.

In terms of raw materials:

The shutdown or reduction of production by some Australian lithium mining companies may put upward pressure on lithium ore prices,. However, at the same time, the expected production of lithium resources in salt lakes is optimistic and has a cost competitive advantage. The sufficient supply of lithium resources in salt lakes and low-cost production are expected to have a certain inhibitory effect on the market price of lithium carbonate.

Downstream demand side

The operating rate of downstream battery factories has increased, and there is still a demand for pre holiday stocking. The power battery market has performed well, especially in the production and sales of ternary batteries, lithium iron phosphate batteries, and electric vehicles, which have achieved considerable month on month growth. This growth trend has had a corresponding boosting effect on the demand for lithium carbonate. Internationally, the results of the US presidential election have been implemented, and tariffs may increase in the future, leading to an increase in battery factory production.

According to the analysis of lithium carbonate data from Shengyi Society, although some Australian mines are experiencing production cuts and shutdowns. However, the overall inventory of lithium carbonate is still excessive, and downstream demand is improving. It is expected that the price of lithium carbonate will continue to fluctuate.