FX.co ★ Lithium Approaches 1-Year High

Lithium carbonate futures exceeded CNY 83,000 per tonne in November, marking their highest level since reaching CNY 85,680 in August. This rise is attributed to stronger demand for batteries and power infrastructure. China has recently emphasized its commitment to bolstering the electric vehicle sector and lithium-rich energy storage systems. It has introduced compensation mechanisms for power storage infrastructure and plans to double its EV charging capacity to 180 gigawatts by 2027. Additionally, the output of new energy vehicles in China surged by 33.1% in the first ten months of the year, with October sales claiming 51.6% market share, marking the first time new energy vehicles have held a majority. On the supply side, stakeholders are closely monitoring the extent of Beijing's intervention as part of its anti-involution strategy. Chinese authorities have reportedly approved reserve reports to resume operations at CATL's Jiangxi mine after a brief halt, facilitating activity in a mine that contributes 3% of the global supply.