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ChinaQ1 2025
In Q1 2025, the lithium market experienced a notable downturn, with prices decreasing by $89,348 per metric ton, Ex-Shanghai representing a 6.44% drop. This decline reflects a continuation of the cooling trend seen in late 2024, driven by a combination of oversupply concerns and softer-than-expected demand from the electric vehicle (EV) and energy storage sectors.
Production ramp-ups in key regions like Australia and Latin America have outpaced short-term demand growth, contributing to downward pressure on prices. Additionally, ongoing economic uncertainties and cautious inventory management by battery manufacturers have tempered purchasing activity. Despite this drop, long-term fundamentals for lithium remain strong, underpinned by the global push toward decarbonization and clean energy technologies.
Q4 2024
In Q4 2024, the lithium market experienced a notable price decrease of $95,495 per metric ton, Ex-Shanghai representing a decline of approximately 10.74%. This significant drop reflects ongoing market adjustments driven by a combination of oversupply concerns, weaker-than-expected demand from the electric vehicle (EV) sector, and increased production capacity in major lithium-producing countries such as Australia and Chile. The decline also suggests a temporary correction following previous price surges, as inventories remained high and buyers became more cautious. Market participants are closely watching for signs of stabilization, with attention turning to downstream demand recovery and potential supply constraints in 2025.
Q3 2024
In Q3 2024, the lithium market experienced a notable downturn, with prices declining by $106,980 per metric ton, Ex-Shanghai marking a sharp 12.62% decrease. This significant drop reflects ongoing oversupply concerns and weakened demand, particularly from the electric vehicle (EV) sector, which faced slower-than-expected growth and inventory adjustments. Additionally, increased production from key suppliers such as Australia and Latin America added downward pressure on prices. Market sentiment was also dampened by economic uncertainty and tightening monetary policies, which reduced investment appetite. The lithium industry’s outlook remains cautious, with stakeholders closely monitoring demand recovery and supply chain dynamics.
Q2 2024
In Q2 2024, the lithium market experienced a notable rebound, with prices surging by $122,433 per metric ton, Ex-Shanghai marking a 7.77% increase. This uptick suggests renewed demand momentum, likely driven by expanding electric vehicle (EV) production, restocking by battery manufacturers, and improved investor sentiment. The increase may also reflect tighter supply dynamics due to weather-related disruptions in key producing regions or delays in new project ramp-ups. Overall, the price surge indicates a tightening market environment, reinforcing lithium’s critical role in the clean energy transition and suggesting potential volatility ahead if supply fails to keep pace with accelerating demand.
Q1 2024
In the first quarter of 2024, the lithium market experienced a significant price decline, with prices dropping by $113,601 per metric ton, Ex-Shanghai representing a steep decrease of 27.51%. This sharp downturn reflects a combination of factors including oversupply concerns, weakening demand from key end-use sectors like electric vehicles and battery manufacturing, and broader macroeconomic uncertainties. The substantial price correction signals a cooling phase after previous high valuations, potentially prompting producers to reassess production strategies and investors to recalibrate expectations. Moving forward, market participants will closely monitor supply adjustments and demand recovery to gauge the lithium market’s trajectory for the remainder of the year.
PriceWatch is your trusted resource for tracking global lithium price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the lithium market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence lithium prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely lithium market data.
Track PriceWatch's lithium price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Lithium is a soft, silvery-white alkali metal (Li) renowned for its exceptional electrochemical properties, making it a cornerstone element in modern energy storage solutions. As the lightest metal, lithium is primarily used in the production of lithium-ion batteries, which power a wide range of devices from smartphones and laptops to electric vehicles (EVs) and grid-scale energy storage systems. Beyond batteries, lithium compounds such as lithium carbonate and lithium hydroxide are critical in the manufacturing of ceramics, glass, lubricating greases, and pharmaceuticals for mood stabilization. Lithium’s high energy density, low atomic mass, and reactive nature also make it vital in nuclear technology and emerging hydrogen fuel applications. With growing demand in renewable energy and electrification sectors, lithium plays an essential role in the transition to a low-carbon, sustainable future.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Property | Specification |
| Chemical Symbol | Li |
| Atomic Number | 3 |
| Purity | ≥ 99.9% (Battery Grade) |
| Physical Form | Ingots, |
| Color | Silvery-white, turns gray on oxidation |
| Density | 0.534 g/cm³ |
| Melting Point | 180.5 °C |
| Boiling Point | 1,342 °C |
| Hardness (Mohs) | ~0.6 |
Applications
Raw Material Availability: Lithium is primarily extracted from hard rock deposits (like spodumene) and lithium-rich brine resources. Variations in ore grade, extraction difficulty, water availability (especially for brine operations), and depletion rates can significantly impact supply and pricing.
Supply and Demand Dynamics: Lithium demand is mainly driven by the electric vehicle (EV) battery industry, energy storage systems, and consumer electronics. Rapid growth in EV adoption, government incentives for clean energy, and advancements in battery technology create strong demand surges, which push prices upward. Conversely, market slowdowns or oversupply can depress prices.
Production and Processing Costs: Extracting and refining lithium into battery-grade materials involves complex and costly processes, including chemical conversion and purification. Costs of energy, labor, water, and chemicals, as well as scale efficiencies at production facilities, heavily influence lithium prices.
Environmental and Regulatory Factors: Lithium mining and extraction (especially from brine) often require significant water usage and can cause ecological concerns. Stricter environmental regulations on water use, waste disposal, and land reclamation can increase operational costs and constrain supply, thereby influencing prices.
Global Trade Policies and Tariffs: Lithium-producing countries like Australia, Chile, Argentina, and China dominate the market. Export controls, tariffs, or trade disputes involving these key producers or major consumers (such as China and the U.S.) can disrupt supply chains and cause price volatility.
Geopolitical Risks and Regional Stability: Lithium production regions are often politically sensitive or subject to social conflicts. Instability, policy changes, or nationalization efforts can disrupt mining operations or exports, impacting global lithium supply and pricing.
Technological Advancements: Innovations in lithium extraction methods (e.g., direct lithium extraction from brine), battery chemistry improvements reducing lithium intensity, and recycling technologies can alter demand and supply balance, affecting prices over time.
Exchange Rates: Lithium is traded globally, so fluctuations in currencies such as the Australian Dollar, Chilean Peso, Chinese Yuan, and U.S. Dollar affect export competitiveness and international pricing.
Market Competition and Substitutes: Competition between lithium producers, the emergence of alternative battery chemistries (like sodium-ion or solid-state batteries), and recycling initiatives can impact lithium demand and pricing strategies.
The availability and cost of raw materials such as high-carbon steel and alloy coatings directly affect Lithium production costs and pricing.
Lithium prices generally increase alongside inflation, driven by rising costs of mining, processing, and logistics. Additionally, strong and growing demand from electric vehicle manufacturers, battery producers, and renewable energy sectors helps maintain price stability and upward pressure even during broader economic shifts.
Pricewatch offers a range of tools and services to track commodity prices effectively:
Real-Time Data: Access to market intelligence and data on global Lithium supply chains.
Expert Analysis: Insights into market trends and potential risks.
Risk Assessment: Tools to evaluate supply chain vulnerabilities.
Benchmarking: Compare Lithium prices and sourcing practices.
Supplier Intelligence: Information on supplier reliability and financial health.
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