Demand for lithium typically picks up in the fourth quarter in China – the world’s largest EV market – because of strong battery cell production and installation, and manufacturers usually replenish their feedstock ahead of that.
But this year, that hasn’t happened. Sizable restocking has yet to materialize, Susan Zou, an analyst with researcher Rystad Energy“The price drop is fundamentally explained by an increase in supply driven by greater rock and brine production in China, the start of operations at Sigma Lithium’s Grota do Cirilo rock project in Brazil, and the Cauchari Olaroz brine project of Lithium Americas in Argentina.
“For the rest of the year, the fundamental focus appears to be on a seasonal uptick in Chinese EV sales, and we think any disappointment relative to historical norms could put accelerated downward pressure on prices,” they wrote in a note dated Sept. 21.Lithium Americas soars on first day of trading as North American pure-play minerThe mining giant has begun at Kumba Iron Ore, where 181 workers got notices and 141 jobs are expected to be cut.