Live Electric Metal Prices Today

While China only accounts for roughly a quarter of the world’s raw lithium supply, it holds a virtual monopoly on processing capacity. China produces an estimated 80% of the entire world’s lithium-ion batteries each year, and about 60% of all electric vehicle batteries. As a result, Chinese prices for battery-grade lithium (i.e. lithium carbonate with over 99.5% purity) have become one of the foremost proxies for the price performance of lithium as a commodity.

Historically, lithium prices have been volatile, affecting the profit margins of both sellers and buyers. Lithium futures, also known as Lithium Hydroxide CIF CJK Fastmarkets futures contract (China, Japan, Korea) provides protection against unexpected market fluctuations by having their prices move in conjunction with the prices of the underlying asset.

China’s 99.5% Lithium Prices

China’s 99.2% Lithium Prices

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The OECD provides a comprehensive framework for determining the price of lithium. Here are the main factors that affect lithium price:

• Market conditions and demand: The surge in demand from electric vehicles, portable electronic devices and energy storage options significantly influence lithium demand.
• Quality and Grade of lithium: Battery grade (higher purity) commands premium prices over industrial grades.
• Production costs: The costs to extract and process lithium from brine or mineral sources, play a critical role in its market price. These costs are influenced by technological efficiency, energy prices and regulations.
• Supply chain efficiencies: From extraction to delivery, logistics play a key role.
• Regulatory environment: Subsidies and environmental/governmental policies affect production costs.

Electric Metal grades refer to the purity of the lithium compounds. The specific grade required can vary significantly depending on the end use.

The three most common lithium grades are:

• Electric Metal: Battery Grade, essential for lithium-ion batteries in EV and portable electronics. The pricing for Lithium Carbonate 99.5% (CNY/mt) is considered the benchmark for lithium pricing worldwide.