20.10.202514:09:56UTC+00Lithium Holds Pullback

Lithium carbonate prices settled at CNY 74,000 per tonne, maintaining most of the drop since the one-year peak of CNY 87,100 observed in August. This stabilization occurred as markets evaluated the Chinese government's supply control measures against the demand for electric vehicles. It's been reported that Chinese authorities have approved reserve reports to restart operations at CATL's Jiangxi mine, which previously faced a halt due to expired mining permits. The reopening mitigated the previous spike in lithium prices and alleviated justifications for the extensive supply cuts proposed by the Chinese government aimed at addressing deflationary pressures through its capacity-cutting strategies. Nonetheless, prices remain above past lows, as robust demand for electric vehicles continues to prevent a significant oversupply of batteries. This is further supported by Beijing's recent announcement to double EV charging capacity by 2027.