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Lithium Prices in China Halve in Just Four Months 

  • EV battery material surged more than 1,300% in just two years
  • Supply increase, car-sale slowdown have taken toll on material

Brine evaporation ponds in Golmud, China.

Photographer: Qilai Shen/Bloomberg
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The frenzy for lithium, which saw Chinese prices of the electric-vehicle battery material surge more than 1,300% in just two years, has turned into a rapid retreat.

Prices of lithium carbonate, the benchmark product, have halved since rocketing to a record last November, according to data from Asian Metal Inc. That reflects two major pressures: the prospect of much more global supply coming online this year, and signs that the breakneck growth of China’s EV sector is starting to moderate.