LTHM - Surge in Chinese lithium prices has turned into rapid retreat

2023-03-22 10:59:10 ET

Prices of lithium carbonate have been cut in half since rocketing to a record last November, Bloomberg reported Wednesday, reflecting the prospect of more global supply coming online this year and signs that the breakneck growth of China's electric vehicle sector is starting to moderate.

"Lithium carbonate prices saw a greater rate of decline as greater supply growth outlook for the year coincides with weaker demand sentiment," BloombergNEF said in a report.

Prices of lithium-bearing spodumene also have declined, data from Benchmark Mineral Intelligence shows.

The decline of lithium prices offers some cost relief to automakers and battery manufacturers squeezed by soaring costs, but lithium remains at lofty levels compared with its lows in 2020.

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After falling steadily for six weeks, shares of lithium companies moved higher Tuesday .

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