FX.co ★ Lithium Holds Rebound

Lithium carbonate prices in China climbed above CNY 160,000 per tonne in April, the highest level in nearly a month and about 40% higher since the start of the year, driven by bullish demand expectations in both the near and longer term. The sharp rise in crude oil and refined product prices since early March has reinforced the outlook that major economies will increasingly favor new energy vehicles, whose batteries rely heavily on lithium as a key input.

Adding to this optimism, BYD raised its overseas sales forecast for 2024 to 1.5 million units, up from its January estimate of 1.3 million. Demand has also been underpinned by continued Chinese investment in power infrastructure, highlighted by recent plans to boost spending on power storage.

At the same time, Beijing has announced it will double the country’s EV charging capacity to 180 gigawatts by 2027, further supporting the deployment of lithium-rich energy storage systems. On the supply side, Zimbabwe has suspended exports of lithium concentrates and other unprocessed lithium materials in a bid to promote domestic refining.