Inside Xinwangda company in Nanjing, where lithium batteries are produced for electric cars and other purposes. Photo: AFP
According to Chairman Li Liangbin, the demand for lithium from electric battery manufacturers, energy storage facilities, and other products will continue to increase in the context of the “irreversible” global energy transition.
The price of lithium in China has dropped sharply in the past year due to increased supply and slowing demand. The spot lithium carbonate price on the world’s leading electric vehicle market is fluctuating around 100,000 Chinese yuan ($14,000)/tonne, about 1/6th of the peak recorded in November 2022. This decline has affected the profits of mines, threatening to limit global production capacity.
At an annual meeting of the National People’s Congress of China (the parliament) held in Beijing, Li said that if the price of lithium can stabilize between 80,000-150,000 Chinese yuan, it can bring profits to companies in the industry and create the best development environment for the entire industry.
Li also stated that the Chinese government and Chinese companies have taken various measures to stabilize prices, including launching a lithium carbonate futures trading platform and companies making long-term purchases to ensure stable supply and prices. His company has also invested heavily in resources abroad, including Australia, Argentina, and exporting to Europe, Japan, and South Korea.
