'Lithium carbonate prices in China rose slightly to 478,500 yuan/tonne in mid-August, remaining close to the record-high of 500,000 from March and 400% higher year-on-year as soaring demand drove expectations of extended supply deficits. Fresh data from the Shanghai Metals Market pointed to a supply deficit of 1,361 tonnes in July, swinging from the supply surplus in the prior month as the re-opening of the Chinese economy and cash subsidies for new energy vehicles lifted car manufacturer’s demand. On top of that, mid-year maintenance for producers drove carbonate output to contract 4% on the month to 30,320 tonnes during July. In the US, demand for new energy vehicles is set to increase as the newly passed “Inflation Reduction Act” extends tax breaks for new electric vehicle purchases.'
