12.05.202515:17:55UTC+00Lithium Sinks to Over 4-Year Low

Lithium carbonate prices have dropped to below CNY 65,000 per tonne, marking their lowest point in over four years, as supply consistently surpasses demand. In April, sales of new energy vehicles in China decelerated compared to the previous year, and exports declined, as reported by the China Passenger Car Association. This occurred despite ongoing government incentives aimed at promoting vehicle exchanges and energy transition technologies. The recent data align with trends showing that China's electric vehicle (EV) market has not expanded as anticipated following the surge at the beginning of the decade. This unexpected growth pattern led to Beijing providing subsidies to battery manufacturers, which in turn triggered a significant increase in production and created a supply surplus. As a result, battery inventories are expected to remain high since EV manufacturers are not hurrying to make new agreements. Moreover, supply levels are unlikely to decrease in line with market demands because lithium miners continue to operate, aiming to maintain market share and preserve their business relationships with governments and battery producers.