Lithium carbonate prices fell below CNY 145,000 in July, their lowest level in five months, as weak demand collided with rising global supply. In China, authorities announced the end of tax exemptions for lithium-ion batteries in an effort to curb a “race to the bottom” among manufacturers. Industry reports indicated that intense competition among EV battery producers to protect their market share had prompted firms to accelerate production schedules, leading to increased lithium procurement ahead of the policy change.
At the same time, CATL’s Jianxiawo mine—one of the world’s largest—secured the necessary safety approvals to resume operations after an extended shutdown. Higher lithium prices earlier in the year also encouraged Australian producers to bring capacity back online. Mineral Resources plans to restart its Bald Hill lithium mine after an 18‑month suspension, while Core Lithium has resumed its Finniss project, helping to offset supply shortfalls in other regions.
