The average price of battery-grade lithium carbonate falls below 400000 yuan per ton, and the price of electric vehicles is expected to be reduced.

CTOnews.com February 28 news, according to Shanghai Steel Union released data show that today's part of lithium battery material prices continue to fall, battery grade lithium carbonate fell 7500 yuan/ton, the average price reported 395,000 yuan/ton, fell below 400,000 yuan/ton, from nearly 600,000 yuan/ton of historical highs only three months have passed.

In the past two years, the rapid growth in the number of electric vehicles has broken the balance between supply and demand of lithium, the core raw material of power batteries, and lithium prices have soared. Since 2021, the upstream lithium price has experienced a long-term rise for 2 years, and the price of lithium carbonate has also risen from 67,900 yuan/ton in January 2021 to 590,000 yuan/ton in November 2022.

In terms of lithium carbonate supply, according to the data of Lithium Industry Branch of China Nonferrous Metals Industry Association, China's lithium industry maintained a rapid growth rate in 2022, among which the output of lithium carbonate was 395,000 tons (production capacity of about 600,000 tons), with a year-on-year growth of 32.5%; The output of lithium hydroxide was 246,400 tons (production capacity of about 360,000 tons), with a year-on-year growth of 29.5%. The continuous increase in domestic lithium carbonate production will also ease the tension between supply and demand to a certain extent.

As for the future trend, Shanxi Securities, Guolian Securities and other institutions released forecasts that the price of lithium carbonate will be around 350,000 yuan/ton this year and next, and the price of lithium carbonate will remain above 300,000 yuan/ton from 2025 to 2026.

Ouyang Minggao, academician of the Chinese Academy of Sciences, professor of Tsinghua University and vice chairman of the 100-member Association, said at the expert media exchange meeting of the China Electric Vehicle 100-member Association Forum (2023) held recently that lithium price will continue to return in the next few years, but it is impossible to be as low as before. The reasonable price balance point may be about 200,000 yuan/ton.

CTOnews.com once reported that on February 17, the media exposed Ningde Times to launch a "lithium mine rebate" plan to automobile enterprises. According to this plan, in the next three years, lithium carbonate of some power batteries in Ningde Times will be settled to four strategic customers at a price of 200,000 yuan/ton.

The rational return of lithium carbonate price will undoubtedly further benefit the overall development of new energy automobile industry, the cost of electric vehicles will also be reduced, and the price of products will also be reduced accordingly, which will finally benefit consumers.