Lithium prices split as China spot dips but futures climb on supply fears

Lithium carbonate prices in China have shown mixed movements this week. While spot market values dropped, futures contracts rose on supply concerns. The shifts come as global demand for battery materials remains strong.

Meanwhile, Zimbabwe’s government has taken steps to secure its lithium reserves by declaring the mineral critical to national interests. On China’s spot markets, the price of battery-grade lithium carbonate fell by 0.71% to 175,550 yuan per tonne. Investing.com’s benchmark for 99.5% minimum purity also declined, dropping 1.96% to 75,000 yuan. Despite these short-term dips, Trading Economics reported a yearly increase of 1.14%, bringing the price to 177,500 yuan per tonne.

Futures contracts, however, told a different story. The GFEX top-traded lithium carbonate contract rose by 1.97% to 178,860 yuan. Traders attributed the gain to tighter feedstock supplies and expectations of stronger near-term demand.

Beyond price movements, China is pushing ahead with major energy infrastructure plans. The 15th Five-Year Plan includes over 5 trillion yuan in investments to modernise and expand the national power grid. This move aligns with the country’s push for renewable energy and electric vehicle adoption.

In Africa, Zimbabwe has taken a firm stance on its lithium resources. The government declared lithium a critical mineral, requiring a mandatory state interest in all projects. The policy aims to ensure greater control over the country’s growing lithium sector, which has attracted significant foreign investment in recent years. The latest price changes highlight ongoing volatility in the lithium market. Spot prices softened, but futures gains suggest traders anticipate tighter supply ahead. With China’s grid investments and Zimbabwe’s policy shift, the global lithium landscape continues to evolve rapidly.