Commodity Star Lithium Shows Signs of Cooling After 1,200% Rally
- Battery material posts first dip since June, Albemarle tumbles
- End of government EV subsidies testing growth outlook in China
Bags of lithium carbonate. The commodity -- a vital component in most electric-vehicle batteries -- has more than tripled in price over the past year.
Photographer: Carlos Becerra/BloombergThis article is for subscribers only.
A two-year buying frenzy in the world’s biggest lithium market is showing tentative signs of cooling off into the end of 2022 as huge increases in demand from China’s electric-vehicle sector begin to moderate.
Spot prices for lithium carbonate in China edged lower on Tuesday to register their first drop since June, according to data tracked by Asian Metal Inc. Speculation that demand for the battery material may soften triggered a slump in some leading lithium stocks, with top producer Albemarle Corp. tumbling.