Jul 20, 2024 05:22 AM
BUSINESS
Lithium Producers Cut Production as Prices Plunge
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
The global lithium industry has been experiencing a turbulent period over the past few years as skyrocketing prices have plummeted
Many of China’s lithium producers have begun slashing output to stem profit losses as the price of this crucial material for electric vehicle batteries continues to fall.
“When prices drop to 90,000 yuan per ton ($12,394), companies are forced to make tough decisions; some reduce or even halt production,” noted a government official from Yichun, a major lithium production center in China.
You've accessed an article available only to subscribers
VIEW OPTIONS
Download our app to receive breaking news alerts and read the news on the go.
Get our weekly free Must-Read newsletter.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- China's lithium producers are cutting production due to a significant drop in lithium prices, with battery-grade lithium carbonate trading at 87,000 yuan per ton, down 70% from a year ago.
- Nearly half of Yichun's lithium producers are reducing operations, with many upstream mining companies shutting down as prices fell below the 90,000 yuan break-even point for some producers.
- Lithium prices surged to 600,000 yuan per ton in late 2022 due to high EV demand but have since fallen due to overproduction and slowing EV demand, resulting in excess supply.
AI generated, for reference only
What Happened When
- Late 2022：
- The spot price of lithium carbonate reached a record high of around 600,000 yuan per ton.
- 2023：
- Lithium prices collapsed by more than 80%.
- End of 2023：
- China’s lithium carbonate production capacity jumped to 1.31 million tons.
- February 2024：
- Less than 20% of China's mica-derived lithium carbonate production capacity was operational.
- June 2024：
- The operating rate of China's mica-derived lithium carbonate production capacity remained below 50%.
- July 2024：
- Lithium prices dropped below 90,000 yuan earlier in the month.
- July 18, 2024：
- Battery-grade lithium carbonate traded at 87,000 yuan a ton, marking a 70% drop from a year ago.
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新