The most-traded GFEX (Guangzhou Futures Exchange) lithium carbonate contract hovered rangebound last week, with the settlement price largely staying flat as of Friday July 17 against the previous Friday July 10, data showed. The session ending July 17 saw the continued tug-of-war between recent supply tightness and future supply ramp-ups. In addition, late last Friday, China announced a consumption tax on lithium-ion batteries: 2% from September 1, 2026, rising to 4% from September 1, 2027. A production rush in August is likely, but capacity headroom may limit the actual boost. The tax will raise battery costs, accelerate the squeeze on highcost capacity, and shift demand toward taxexempt alternatives over time.