Recent Dramatic Fluctuations in Lithium Carbonate Prices in China

November 25th, according to news from China,

According to the commodity market analysis system, the price of lithium carbonate has shown a dramatic fluctuation recently. As of November 25, the benchmark price of battery-grade lithium carbonate in China was 92,266 CNY per ton, down 3.15% from the weekly high (November 19), up 21.56% month-over-month, and up 14.19% year-over-year; the benchmark price of industrial-grade lithium carbonate in China was 90,433 CNY per ton, up 21.99% month-over-month and up 15.64% year-over-year.

The primary driver of the earlier rally was the sustained improvement in terminal demand.

Downstream demand remains optimistic, with material suppliers generally reporting full order books. The energy storage sector continues to exceed expectations. In the first three quarters of 2025, global energy storage cell shipments reached 410.45 GWh, a year-on-year increase of 98.5%. Among these, the third quarter alone saw shipments of 170.24 GWh, setting a new record for a single quarter.

In the field of new energy vehicles, China produced and sold 1.772 million and 1.715 million new energy vehicles in October, representing year-on-year growth of 21.1% and 20.0%, respectively. The sales of new energy vehicles accounted for 51.6% of total vehicle sales, setting a new historical record.

Later market sentiment fluctuates, lithium carbonate stops rising and falls back

On November 20, the exchange announced adjustments to contract fees and set stricter daily position limits, which cooled the sentiment in the futures market, leading to a halt in the rise of the spot price. Recent market news suggests that CATL's Jianxiawo lithium mine may resume production in early December, further putting pressure on prices.

Further cooling market sentiment by heading to the vault

The 14-week inventory clearance trend has shown a significant slowdown. As of the 21st, the total lithium carbonate inventory in China was 118,400 tons, with a weekly decrease of only 2,052 tons. Among these, the inventory at smelters was 26,100 tons, and the downstream inventory was 54,400 tons.

Lithium carbonate data analysts believe that in the medium to long term, lithium carbonate prices are expected to trend strongly amid robust supply and demand. In the short term, rumors of production resumption will continue to disrupt the market, and specific developments need to be monitored.