FX.co ★ Lithium Rises to 17-Month High

In November, lithium carbonate futures in China exceeded CNY 92,000 per tonne, marking their highest level in 17 months, fueled by a positive outlook for battery infrastructure demand. China, the world's leading lithium consumer, announced plans to double its electric vehicle (EV) charging capacity to 180 gigawatts by 2027, enhancing the landscape for energy storage systems rich in lithium by implementing compensation mechanisms for power storage infrastructure. This expansion is further underpinned by a 33.1% increase in the production of new energy vehicles in China during the first ten months of the year. Notably, in October, these vehicles captured 51.6% of the market share, marking the first time they have represented a majority. In response, Ganfeng, a major lithium producer, anticipates a 30% growth in demand for lithium next year. On the supply side, the market is closely observing the extent of intervention Beijing may apply under its anti-involution initiative. Notably, the government has sanctioned the resumption of operations at CATL's Jiangxi mine following its suspension, revitalizing a site contributing to 3% of the global lithium supply.