Lithium carbonate prices rebounded to CNY 165,000 per tonne from a three-month low of CNY 151,750 on June 29th, as evidence of robust demand outweighed the impact of recent upgrades to global supply. In China—the world’s largest lithium consumer by a wide margin—industry reports indicated that intensifying competition among EV battery manufacturers to defend market share has prompted them to ramp up production schedules, driving a corresponding increase in lithium procurement.
In addition, accelerating demand for energy storage systems has further boosted lithium use, even as EV orders in China soften. These systems are being deployed by Beijing both to manage the surging power loads of data centers—spurred by rapid AI computing expansion—and to support the growing integration of renewable energy into the grid.
However, abundant supply has limited the scale of the price rally. CATL’s large Jianxiawo mine has obtained the necessary safety clearances to resume operations after a prolonged suspension, while higher lithium prices have encouraged Australian producers to restart previously idled mining capacity.
