Lithium Prices Fall to Near 10-Month Low on Weak Demand and Rising Supply
Chinese lithium carbonate prices dropped to CNY 115,000 per tonne in October, reaching their lowest point of the year. The price fall comes as battery demand weakens alongside expanding global supply. Futures for COMEX lithium hydroxide were also lower, down 0.44% at 15.9 USD.
Demand outlooks softened after news that the European Union plans to limit imports of Chinese hybrid electric vehicles to 350,000 units per year beginning next year. The European Commission expects this restriction to cut China's market share in the region by half, reducing orders for local battery makers. Meanwhile, recalculated inventory metrics showed Chinese stockpiles grew by 175,000 tonnes, double previous estimates.
Looking ahead, market participants will monitor rising output from key exporters. In Australia, Mineral Resources restarted operations at its Bald Hill mine after an 18-month hiatus, while Core Lithium resumed activity at its Finniss project, adding further momentum to the supply expansion.
Key points
- Chinese lithium carbonate prices dropped to CNY 115,000 per tonne in October, hitting a 2026 low.
- Planned European Union caps on Chinese hybrid vehicle imports are expected to halve China's regional market share.
- Revised inventory calculations showed Chinese lithium stockpiles were 175,000 tonnes higher than expected.
- Australian producers Mineral Resources and Core Lithium restarted operations at two major mining projects.
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How we writeDisclaimerQuestions and answers
Why are lithium prices falling?
Lithium prices are falling due to weaker battery demand, increased inventory figures in China, and extra production returning to service in Australia.
How will European import limits impact lithium demand?
The European Union plans to cap Chinese hybrid electric vehicle imports at 350,000 units per year starting next year, which the European Commission expects will halve China's European market share and reduce orders for battery makers.
What supply changes are happening in Australia?
Australian lithium producers are increasing supply as Mineral Resources restarted its Bald Hill mine following an 18-month pause, while Core Lithium resumed work at its Finniss project.