A Glance of China Lithium-ion Battery Materials Market 20260127

The most-traded GFEX LC contract recorded a winning week ending Friday January 23, with the settlement price rising 15.8% from the previous Friday January 16. The increase was partly triggered by the resurfacing supply concerns. Elsewhere, Mysteel's tracking of the daily spot transactions indicated that the overall lithium carbonate spot trading stood at 8,625 tonnes last week, an increase of nearly 25% from the previous session and a relatively high level since Mysteel's recording. Meanwhile, the weekly survey of the lithium carbonate physical inventory showed that the overall inventory level was back to the downtrend last week though minimal, pointing to firm downstream demand.

A Glance of China Lithium-ion Battery Materials Market 20260120

The most-traded GFEX LC contract showed an inverted V-shaped trend last week, with the rebound fueled by the phase-out of value added tax (VAT) export tax rebate for batteries. However, the prices gradually pulled back in the second half and even hit limit down on Friday January 16 due to cooling sentiment as the fundamentals were largely unchanged, as well as enhanced regulatory efforts, prompting longs to exit the market after paying off. Nevertheless, the spot transactions of lithium carbonate turned active during the price pullback period, indicating robust downstream demand. In addition, influenced by the export tax rebate adjustment, the ternary battery sector has shown a rush to export.

A Glance of China Lithium-ion Battery Materials Market 20260113

The most-traded GFEX LC contract opened 2026 with constant gains, and the settlement price marked a weekly increase of 18.68% as of January 9 compared to the last trading day of 2025, with bullish support mainly from the bullish outlook. The LFP producers carried out maintenance on several production lines as was disclosed earlier, and the lithium carbonate market was near a tight balance. Downstream restocking progress still showed little substantial advancement. Nevertheless, supported by low downstream inventories, lithium carbonate prices continued the upward trend.

A Glance of China Lithium-ion Battery Materials Market 20260106

China's lithium carbonate futures price experienced a short pullback after climbing for several consecutive days, and hovered rangebound in the last two trading days of 2025, closing the year at Yuan 120,640/tonne, an increase of nearly 55% from Yuan 77,860/tonne at the beginning of the year. Nonetheless, bullish sentiment sustained. The detailed policies regarding 2026 national subsidies have been officially released. In addition, the extensive overhaul-triggered production cuts among leading LFP cathode factories signal the suppliers' firm stance to raise the prices based on optimistic outlook, though it will slightly reduce the lithium carbonate consumption in January 2026.

A Glance of China Lithium-ion Battery Materials Market 20251230

Following the first environmental impact assessment notice of CATL's Jianxiawo mine released last Friday December 19, the lithium prices recorded another winning week, with the most-traded GFEX LC contract gaining more than 15% in the past session (December 20 26). On the news front, three major cathode active materials plants disclosed their outage plans recently, with the purpose of capturing the pricing power in negotiations with downstream battery cell factories.

A Glance of China Lithium-ion Battery Materials Market 20251223

After hovering rangebound for several weeks, the most-traded GFEX LC contract broke the range and regained momentum after progress concerning Jianxiawo's restart came along. On the fundamentals, Mysteel's survey of 97 sampled players indicated sustained lithium carbonate inventory drawdown among industrial players. However, the marketable inventory held by traders and lithium refineries further increased as high lithium prices put the downstream players on the sidelines, with the daily spot trading volume remaining at a low level. On the contrary, the refineries actively sold to the traders when lithium carbonate prices were above Yaun 105,000/tonne, resulting in continued accumulation of traders' stocks.

A Glance of China Lithium-ion Battery Materials Market 20251216

After a mild pullback at the beginning of the week, the most-traded GFEX LC contract was back on the upward trajectory in the remaining of the reporting session (December 6-12). With market players busy negotiating long-term orders for 2026, those have not secured enough supply were still with demand for spots. However, the high lithium prices have slowed the spots transactions. Nevertheless, demand remained relatively strong in December, and cathode factories maintained low inventory levels, indicating a need for restocking. It is expected that lithium carbonate prices will still have the momentum to increase.

A Glance of China Lithium-ion Battery Materials Market 20251209

China's lithium prices showed weakness in the reporting period (November 29 - December 5), with pressure primarily stemming from the expectations of Jianxiawo resuming the operation in early December, as well as signs of slowing destocking entering December. On the spot market, the spot transactions were relatively active, and the price cut has encouraged the players to close their back-pricing orders placed earlier. In addition, though December LFP production scheduling will likely edge down from that in November, the cathode plants' in-plant stocks were at a relatively low level, suggesting sustained stockpiling demand.

A Glance of China Lithium-ion Battery Materials Market 20251202

The most-traded lithium carbonate futures price was again on the rollercoaster in the reporting period (November 22 - 28), with the price hike boosted by the bullish expectations from Tianqi Lithium's chair. Against the bullish market sentiment, the spot market transactions seemed to be more cautious. Downstream buyers showed low acceptance of high spot prices, with procurement primarily driven by rigid demand and post-pricing models, leading to relatively lackluster spot transactions and inventory accumulation in the trading sector. The current lithium carbonate market is under intense tug-of-war between bullish and bearish factors.

A Glance of China Lithium-ion Battery Materials Market 20251125

China's lithium market saw the most-traded lithium carbonate futures price hit limit up and down in the reporting period (November 15 21), while the average price of the contract managed to close the session in the positive. The price hike last week was basically triggered by bullish sentiment on some predictions that lithium price could hit Yuan 150,000-200,000/tonne in 2026, while the fundamentals were little changed. However, the contract pulled back and touched limited down on November 21, with an intraday contraction of 9% with the market transactions stalling at such high lithium prices. Also, the once again rumored production resumption triggered extensive concerns over potential supply increase.