Lithium carbonate prices in China fell below CNY 95,000 per tonne in November, their lowest level in nearly a year, as expectations of weaker demand coincided with signs of improving supply. From next year, the European Union is set to cap imports of Chinese electric vehicles at 350,000 units annually, effectively halving China’s market share in the bloc. This restriction is expected to curb battery orders for Chinese EV manufacturers just as revised data revealed higher-than-anticipated inventories of battery materials.
Industry group SMM revised its methodology for compiling inventory data, resulting in an upward adjustment of Chinese stockpiles by 175,000 tonnes—roughly double previous estimates. At the same time, Australian lithium producers have continued to commit capital to new projects. Mineral Resources has restarted the Bald Hill lithium mine after an 18‑month suspension, and Core Lithium has resumed work at its Finniss project. In addition, Rio Tinto has expanded capacity at its Fenix 1B and Sal de Vida projects in Argentina, backed by $1.4 billion in capital investment.
