Lithium carbonate prices in China stood at CNY 155,000 per tonne in March, trading in a tight range after retreating from the one-month high of CNY 173,000 reached earlier in the month amid weaker demand. Electric vehicle sales at leading Chinese manufacturer BYD plunged 40% year-on-year in February, breaking the upward trend seen in previous months and fueling concerns that the country’s EV market may be losing momentum.
The figures have sharpened worries that higher energy costs, driven by conflict in the Middle East, could discourage major manufacturers from building up inventories of inputs, prompting a broader pullback in industrial metals. At the same time, Chinese supply is also expected to remain constrained by Beijing’s anti-involution campaign. Authorities have already revoked 27 mining permits in Jiangxi, a key lithium-producing hub, following the earlier suspension of operations at CATL’s Jianxiawo lithium mine.
Beyond China, supply dynamics have tightened further after Zimbabwe halted exports of lithium concentrates, a move intended to pressure downstream consumers to establish refining facilities within the country.
