Lithium Prices Plunge on Supply Overhang, EV Market Outlook

The price of lithium carbonate is in free-fall and shows no sign of stopping as a supply glut and weak demand outlook for electric vehicles (EV) make downstream buyers hesitant to increase stocks of the key battery raw material, according to experts.

After a searing two-year run, the spot price for lithium has fallen 57% this year, wiping out its 2022 gains. The price of the metal was 219,000 yuan ($31,800) per ton in China on Tuesday, down 56.4% year-on-year, and more than 60% from its near 570,000-yuan peak in November, data from metal industry information provider SMM Information and Technology Co. Ltd. showed.