Lithium Prices Fluctuate As Supply Chain Adjusts in August

The report begins with a review of the policy and economic landscape in August, providing a foundational understanding of the broader context shaping the lithium market. While specific details remain undisclosed, policy directives and macroeconomic conditions undoubtedly play a pivotal role in the sector's evolution.

As the world's largest consumer of lithium, China's market movements are closely watched. The report meticulously examines price trends for various lithium products in August:

• Lithium Carbonate: The report analyzes both cash and acceptance prices for 99.2%min and 99.5%min lithium carbonate. As a critical raw material for lithium battery cathodes, its price fluctuations directly impact downstream battery manufacturers' costs.
• Lithium Hydroxide: Focused on the acceptance price for monohydrate lithium hydroxide (56.5%min, magnetic impurities ≤0.0001%), essential for high-nickel ternary cathode materials used in high-energy-density batteries.
• Metallic Lithium: Examines acceptance prices for 99%min and 99.9%min grades, a key material for next-generation lithium-metal batteries with significant market potential.
• Lithium Cobalt Oxide: Tracked acceptance prices for Co 60%min lithium cobalt oxide, primarily used in small batteries for 3C electronics.
• Nickel Cobalt Manganese Oxide: Covers three different formulations (523, 613, and 811/8312) of these mainstream ternary cathode materials, each with distinct performance characteristics.
• Lithium Manganese Oxide: Monitors acceptance prices for Chinese lithium manganese oxide (58%min), valued for its cost-effectiveness and safety in mid-to-low-end EVs and energy storage applications.
• Lithium Iron Phosphate (LFP): Analyzes acceptance prices for Chinese LFP (3.9%min), which dominates the new energy vehicle and energy storage markets due to its superior safety, longevity, and affordability.

The report also highlights global lithium market trends in August:

• Spodumene: Tracked China CIF prices for spodumene (6%min), reflecting upstream lithium resource supply conditions.
• Lithium Carbonate: Examined prices across regions (China CIF, Europe delivered, US delivered, and South America FOB), revealing disparities driven by local supply-demand balances, logistics costs, and competitive landscapes.
• Lithium Hydroxide: Monitored China FOB and South Korea delivered prices, similarly influenced by regional market factors.

August witnessed significant activity among major lithium players, with strategic initiatives potentially reshaping market structures:

The report provides detailed August production data for China's key lithium products, offering crucial supply-demand insights:

• Industrial-Grade Lithium Carbonate: Operating rates fell 30.95% YoY, with production down 33.98% and inventories declining 81.89%, indicating weak demand and producer cutbacks.
• Battery-Grade Lithium Carbonate: Operating rates rose 4.21% MoM, with production up 25.99% YoY amid strong demand, though inventories decreased 15.34%.
• LFP: Operating rates surged 34.46% YoY with production up 50.73%, but inventories grew 108.2%, signaling robust demand alongside potential oversupply risks.

July 2025 trade data reveals shifting patterns in China's lithium product flows:

• Lithium Carbonate: Imports dropped 42.67% YoY while exports grew 37.20%, suggesting improved domestic self-sufficiency.
• Lithium Hydroxide: Exports plummeted 86.28% YoY, reflecting challenges in international markets.

Asian Metal's comprehensive August report provides invaluable insights into current lithium market conditions and emerging trends. By analyzing price movements, corporate strategies, production metrics, and trade flows, stakeholders gain clearer visibility into market dynamics to inform strategic decisions.