FX.co ★ Lithium Rebounds to 1-Month High

Lithium prices in China climbed above CNY 150,000 per tonne in August, the highest level in a month, as signs of strengthening demand outweighed the recent improvement in supply conditions. China’s push to electrify its economy has prompted local governments to accelerate investment in electricity storage infrastructure alongside the expansion of renewable power generation.

High‑profile examples include the Medog Hydropower Station and Beijing’s pledge to double national EV charging capacity to 180 gigawatts by 2027. At the same time, industry participants have underscored uncertainty surrounding the timeline for resuming operations at CATL’s Jianxiawo mine. Activity at this major lithium source was halted last year after Beijing declined to renew its license, in line with policymakers’ efforts to counter producer deflation.

On the supply side, the price rally has been tempered by news that Mineral Resources will restart production at Australia’s Bald Hill lithium mine after an 18‑month suspension, while Core Lithium has resumed operations at its Finniss project.