Lithium futures in China traded above CNY 160,000 per tonne, moving closer to the more than two-year peak of CNY 181,000 reached on January 26th. Prices were buoyed by broad strength in industrial metals amid signs of solid demand and emerging supply risks.
On the supply side, Zimbabwe suspended exports of lithium concentrates and other unprocessed materials in an effort to pressure buyers to establish refining capacity within the country. This added to supply concerns already heightened by China’s decision to revoke 27 mining permits in Jiangxi, one of its key lithium-producing regions. The move followed an earlier suspension of operations at CATL’s Jianxiawo lithium mine, part of Beijing’s broader “anti-involution” drive to rein in excessive competition and disorderly expansion.
Demand remained underpinned by China’s continued investment in power infrastructure, highlighted by recently announced increases in power storage spending. In addition, Beijing pledged to double national EV charging capacity to 180 gigawatts by 2027, a goal that is set to further support lithium-intensive energy storage and battery systems.
