FX.co ★ Lithium Rises to 3-Month High

Lithium carbonate prices in China climbed to CNY 175,000 per tonne in late April, the highest level in three months and nearly 50% higher year-to-date, amid signs of strengthening long-term demand. The sharp rise in crude oil and refined product prices since early March has bolstered expectations that major economies will increasingly favor new energy vehicles, whose batteries rely heavily on lithium.

In the automotive sector, BYD raised its overseas sales forecast for this year to 1.5 million units, up from its January projection of 1.3 million, underscoring robust global EV demand. Domestic demand has also been supported by continued Chinese investment in power infrastructure. This was reinforced by Beijing’s recent pledge to double the country’s EV charging capacity to 180 gigawatts by 2027.

Additional support for lithium demand is emerging from data center operators. Their large-scale power storage systems typically require more lithium than those used in EVs, reflecting a new wave of structural demand tied to the surge in capital expenditure by AI firms and hardware manufacturers.