2025.07.0315:31:21UTC+00Lithium Halts Plunge at 4-Year Low

In July, lithium carbonate prices stabilized at CNY 62,000 per tonne, putting a pause to this year's sharp decline, yet they remained close to their lowest levels since 2021. This reflects a market balancing act between abundant supply and what appears to be strong demand. Increased lithium production from countries like China, Indonesia, and the DR Congo has intensified competition among sellers. According to the International Energy Agency, lithium supply grew by 35% last year, with no signs of slowing down. Miners are hesitant to halt operations, as they aim to maintain their market position and sustain business ties with governments and battery manufacturers. Concurrently, China saw a more than 28% increase in electric vehicle sales in May, driven by government initiatives promoting the exchange of older vehicles for new energy models. Although significant, this growth aligns with the existing pattern showing that China's electric vehicle market has not expanded as rapidly as anticipated after the initial surge in the early 2010s. This has led to government subsidies for battery manufacturers, sparking a production surge and consequent oversupply situation.