- Lithium prices softened in Q2 2026 as improving supply expectations outweighed early support from battery and energy storage demand.
- Feedstock pressure eased as ore shipment concerns reduced, salt lake output improved, and suspended mine restart expectations increased.
- Downstream demand stayed healthy from electric vehicles and energy storage, but inventory pressure limited stronger price recovery.
In China, Lithium prices were ~RMB 1,065.17/kg in April and ~RMB 1,049.79/kg in May, showing a ~1.4% decrease. The market had firm support early in Q2 as battery producers lifted procurement for electric vehicles and energy storage applications, while tradable lithium ore remained tight. Supply-side concerns also came from overseas mine disruptions, license uncertainty in key Chinese lepidolite regions, and delayed restart expectations. However, prices later softened as warehouse inventory pressure became visible and Zimbabwe-related supply concerns eased. Rising Qinghai salt lake output during the high-water season also improved availability expectations. Furthermore, CATL had secured a safety production permit for its Jianxiawo lithium mine, clearing a key regulatory hurdle to restart operations after a nearly year-long suspension caused by the expiry of its mining license. The mine, with an annual lithium carbonate equivalent (LCE) production capacity of about 46,000 metric tons, tightening domestic lithium supply during the outage.
