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After Massive Bust, Global Lithium Market Shows Signs of Life

  • Spot carbonate prices in China back at highest since December
  • The market is ‘rebalancing,’ while caution remains, UBS says

Mount Holland lithium mine in Western Australia.

Photographer: Philip Gostelow/Bloomberg
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After a spectacular bust, battery-metal lithium is showing tentative signs of life on speculation the retracement that convulsed the market last year has forced the conditions for a recovery.

The spot price of lithium carbonate in China - the key material used to power electric vehicles - has rebounded to the highest level since December following its 80%-plus collapse in 2023. On the Guangzhou Futures Exchange, meanwhile, the most-active contract has jumped by more than a fifth over the past month.