Key facts
- China's imported spodumene market is stable due to balanced fundamentals.
- 6% spodumene concentrate assessed at $2,020-2,120/t cif China.
- 5-5.5% spodumene concentrate assessed at $1,820-1,970/t cif China.
- Zimbabwean spodumene exports have recovered following an export ban.
- Lithium carbonate prices are up around 20% from the start of the year.
- Global lithium demand is strong, fueled by EV and energy storage growth.
- China's NEV sales penetration rate hit a record 60.4% in July.
- China's lithium chemical output rose 26% in the first half of the year.
China's imported spodumene market is currently stable, with prices holding steady due to a balance between increasing supply and robust demand. The price for 6% spodumene concentrate was assessed at $2,020-2,120/t cif China, unchanged from the previous week. Similarly, the assessment for 5-5.5% spodumene concentrate remained at $1,820-1,970/t cif China.
Increased shipments from Zimbabwe, which resumed exports in April after an earlier ban, have contributed to higher supply. These shipments are largely routed through South Africa, which saw a significant rise in its spodumene exports in May and June compared to April.
Australia continues to be China's largest supplier of spodumene, but other sources like Nigeria, South Africa, Brazil, Mali, and Zimbabwe are becoming more important. The market is also seeing growing demand for lower-grade spodumene as average grades from intensive mining operations have decreased.
Market participants view current lithium prices as attractive, encouraging new project development and capacity expansion. Battery-grade lithium carbonate prices have increased by approximately 20% since the start of the year. While supply is growing from recovering Zimbabwean shipments and new capacity elsewhere, demand is also expanding.
Global lithium demand remains strong, driven by the electric vehicle (EV) and energy storage sectors. China's new energy vehicle (NEV) sales reached a record 60.4% penetration rate in July, supported by strong export demand and the cost competitiveness of NEVs against conventional vehicles due to higher oil prices.
Energy storage systems are also experiencing rapid deployment globally. China's combined output of lithium carbonate and lithium hydroxide reached 724,000t LCE in January-June, a 26% increase from the previous year.