While lithium company stock share prices continue to fall, lithium demand within Chinese EV's continues to rise.
The Chinese market has a curious seasonal cycle where sales of vehicles fall away in Jan/Feb with their new year holidays. Demand then progressively grows through the year to a peak in December. The same high sales in December and sharp drop in January/Feb repeats each year in a regular way. The path between the Jan/Feb low and the next December high is a bit more variable.
The preliminary data around Chinese passenger NEV retail sales is in for March. This confirms a bounce-back from the February low's. It also critically confirms that NEV's chalk up another >50% market share month at 52.3% and also that the year-on-year March growth was 40%. The Chinese market has been and continue to grow at a rapid pace. While there is currently sufficient supply due to all the past FID decisions in multiple countries, strong demand growth and an absence of new FID decisions is the precursor to shortages in the future.
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