Both Supply and Demand Increase, Lithium Carbonate Rides Out Volatility

March 11th, news:

According to the spot market analysis system: Recently, the price of lithium carbonate has been fluctuating. As of March 11, the benchmark price of battery-grade lithium carbonate is 158,000 CNY per ton, an increase of 3.27% compared to the same period last week (March 4), a month-on-month increase of 14.49%, and a year-on-year increase of 109.7%.

Supply Side: China's Production Capacity Release + Significant Increase in Overseas Shipments

Entering March, lithium salt plants in China have fully resumed production, with a significant increase in supply. In terms of production capacity, the core lithium extraction regions in Sichuan, Jiangxi, and Xinjiang, which use spodumene, have seen a substantial increase in their operating rates, becoming the main driving force for the recovery in output. Contract manufacturers, supported by ample orders, have continued to maintain high levels of operation. The lithium extraction sector using lepidolite has maintained stable operating rates due to tight raw material supplies, with no significant increase in production. Overall, the supply of lithium carbonate in China has overcome the disruptions caused by holidays and maintenance, entering a steady phase of increased production, with further capacity releases to follow.

The overseas lithium salt supply is simultaneously rebounding. Core lithium salt exporting countries such as Chile and Australia have become more active in shipping their products, leading to a substantial increase in February shipments. Although some countries have experienced short-term disruptions in export policies, the overall shipment trend remains positive. These additional overseas supplies will gradually arrive at Chinese ports via sea freight, further bolstering China’s market supply. According to the latest statistics from Chilean Customs, Chile’s total lithium carbonate exports in February 2026 reached 26,852 tons, up 17.29% month-on-month and soaring by 84.40% year-on-year. Among these exports, the volume shipped to China amounted to 22,381 tons, representing a sharp 32% increase month-on-month and an impressive 86% year-on-year growth. Meanwhile, in the same month, Chile exported 12,100 tons of lithium sulfate to China (equivalent to 6,100 tons of LCE). The supply from overseas sources to China continues to strengthen.

Demand Side: Downstream demand is recovering, and the prosperity of the industrial chain is picking up.

Cathode materials, as the most critical application end for lithium carbonate, have seen leading enterprises in China fully accelerate their production pace. Production plans for mainstream categories such as lithium iron phosphate and ternary materials have been significantly increased, with output growing by varying degrees month-over-month. At the same time, the energy storage sector, driven by strong demand both domestically and internationally, has maintained a high level of essential demand, becoming the core pillar supporting the release of cathode material capacity and driving the demand for lithium carbonate. This has spurred a supply-demand resonance across the upstream and downstream segments of the lithium battery industry chain, accelerating the pace of industry recovery.

A lithium carbonate data analyst believes that lithium carbonate is experiencing volatile trading amid the combined effects of strong demand and rising supply. In the short term, it will likely continue its current trend, though close attention to changes in market supply and demand remains essential.