FX.co ★ Lithium Surges to 2-Year High

In January, lithium carbonate futures rose sharply, exceeding CNY 150,000 per tonne—a notable increase of nearly 30% since the beginning of the year—reaching their highest level in two years. This surge is attributed to robust demand for power storage alongside expectations of restricted supply. The Chinese government's significant investments in power and datacenter infrastructure, coupled with announced increases in power storage funding, have boosted the outlook for lithium and other battery metals. Furthermore, Beijing's plans to double electric vehicle charging capacity to 180 gigawatts by 2027 are bolstering demand for lithium-rich energy storage solutions. In addition to domestic market strength, Chinese companies' sales of overseas storage systems reached $66 billion in the first ten months of the year, surpassing the $54 billion in electric vehicle exports. Concurrently, authorities have annulled 27 mining permits in Jiangxi, a central lithium-producing region, aligning with the prior suspension of operations at CATL's Jianxiawo lithium mine as part of Beijing's anti-excessive competition initiative.