Everyone concerned about the declining Lithium Carbonate spot...

Everyone concerned about the declining Lithium Carbonate spot prices in China should listen to the last 10 minutes of the most recent episode of the Global Lithium Podcast. There is evident manipulation of spot prices by CATL and the Chinese NEV industry (including BYD), aimed at creating an artificially negative narrative.In contrast, North Asia (including a Japanese shipment mentioned) is experiencing stable prices, as are contract prices, as demonstrated by PLS' latest shipment.

Contract prices, which arguably make up the majority of the genuine prices that miners receive and battery makers pay, can be further evidenced by the significant profit statements of Albermarle, SQM, and PLS from the past week.Outside of the Chinese spot market, prices continue to change hands at the same rate as at the end of 2022. Naturally, CATL and the Chinese NEV car industry have an interest in perpetuating the myth of plummeting prices to secure cheaper lithium.Regrettably, the broader narrative has focused on the Chinese spot market, which has been the most visible market over the past 24 months. However, Joe from the podcast anticipates that Chinese spot prices will rebound by the end of the year, as it becomes clear that the downward manipulation is unsustainable given the strong demand in overseas markets and the inevitable restocking.

Furthermore, February data for EVs in China was largely positive, indicating that the underlying demand remains robust and concerns of demand destruction have been exaggerated. NEV manufacturers will eventually need to re-enter the market; it's just a matter of who will give in first.Unfortunately, in the long term, this situation will likely hinder investments in new mines in 2023, exacerbating the lithium shortfall in the coming years and driving up prices for an extended period, well into the next decade—a rather shortsighted approach.