- Lithium hydroxide prices showed a volatile but overall firm trend globally, driven by supply disruptions, rising production costs, and uneven battery demand.
- Feedstock pressure remained high as lithium supply disruptions, rising energy prices, and higher freight costs increased refining costs.
- Downstream demand stayed mixed, with early strength from battery exports, mid-quarter EV slowdown, and strong recovery from energy storage demand.
Asia
Lithium hydroxide prices in Asia followed a firm but fluctuating trend in Q1’26, closely tracking lithium carbonate and feedstock conditions. Prices increased early in the quarter due to a surge in battery exports triggered by tax rebate changes, which led to higher cathode production and raw material demand. Supply remained tight due to mining restrictions in Jiangxi, reduced contract deliveries, and low inventories, which supported price increases.
Mid-quarter, prices corrected as new energy vehicle sales declined sharply, weakening demand. Later, supply improved with higher domestic output and increased imports from South America and Australia, while rising natural gas and freight costs due to Middle East tensions increased refining costs, stabilizing prices. One key production trend was the strong expansion in China’s lithium chemical output, reflecting improving operating rates and capacity additions.
Europe
In Europe, lithium hydroxide prices remained firm with fluctuations, supported by rising import costs and supply uncertainty. The US-Iran conflict increased energy prices and disrupted logistics, raising costs for imported lithium feedstock and refining, which led to price increases. However, weak automotive demand limited purchasing activity, restricting further gains. The region’s reliance on imported lithium materials kept it exposed to global supply disruptions, while growing battery and energy storage demand provided partial support.
North America
In North America, lithium hydroxide prices followed a firm trend with periodic fluctuations. Rising energy costs and higher freight rates linked to Middle East tensions increased production and transportation expenses, which supported prices. Demand from electric vehicles remained inconsistent due to fluctuating sales, while strong growth in energy storage applications supported consumption. The market remained sensitive to global supply disruptions due to dependence on imported lithium feedstock.
Analyst Insight
According to Procurement Resource, lithium hydroxide prices are expected to remain firm with moderate volatility, supported by strong energy storage demand and ongoing supply-side constraints.
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