The surge in lithium carbonate prices is expected to remain strong in the short term

Recently, the price of lithium carbonate has returned to the 100,000 yuan per ton mark, with the supply gap continuing to widen. This pressure is directly driven by the collective price increases of upstream raw materials for lithium batteries since July. As a core material for the cathodes of power and energy storage batteries, the price of lithium carbonate surpassed 100,000 yuan per ton in November 2025, representing an increase of over 70% from its low point in June.

Industry analysts believe that the rapid reversal in lithium carbonate prices is primarily due to two factors. First, some production capacity has been forced to exit the market. In previous years, with the continuous expansion of lithium carbonate demand, low-grade lepidolite attracted industry attention, and lithium extraction from mica once accounted for about one-third of total output. However, as the cost threshold for mica lithium extraction was breached, some production capacity was compelled to leave the market. Second, downstream demand has become concentrated. The halving of the purchase tax on new energy vehicles in 2026 has stimulated increased consumption, prompting automakers to accelerate production. Simultaneously, the energy storage market is also booming, resulting in a concentrated surge in demand.

This recent increase in lithium carbonate prices is primarily due to a temporary imbalance between supply and demand. Since energy storage projects have short cycles and rapid cash flow, some battery manufacturers have converted their power battery production lines into energy storage battery production lines, resulting in localized supply shortages of power batteries.