FX.co ★ Lithium Rises to Over 1-Year High

In November, China's lithium carbonate futures surged beyond CNY 86,000 per tonne, marking a 14-month high. This increase stemmed from heightened demand for batteries and power infrastructure. The Chinese government underscored its commitment to the electric vehicle sector and lithium-based energy storage by introducing compensation mechanisms for power storage infrastructure. This initiative aims to double the nation's electric vehicle charging capacity to 180 gigawatts by 2027. Additionally, China witnessed a 33.1% increase in new energy vehicle production during the year's first ten months, with October sales accounting for 51.6% of the total market— the first instance where new energy vehicles have achieved a majority. Major producer Ganfeng has projected a 30% rise in lithium demand for the coming year. On the supply side, the market remains focused on the extent of Beijing's intervention concerning its anti-involution policy. Consequently, activity has resumed at CATL's Jiangxi mine following government approval, which had been suspended, a site contributing to 3% of the global supply.