Lithium carbonate prices fell past CNY 75,000 in March, the lowest in four months amid persistent pressure from an oversupplied market. Sales of electric vehicles by Chinese brands fell by 3% from the previous month amid fresh pressure in sales by SAIC, which were especially hit by sanctions from the EU and elsewhere due to China's subsidies of the sector. Still, investors expect battery inventories to remain elevated due to the lack of urgency for EV manufacturers to start new supply contracts. This is due to lithium miners refraining from closing operations to retain market share and business relationships with governments and battery producers. Such developments were lastly underscored by CATL reopening a lithium mine in the Jiangxi province following its IPO in Hong Kong, while Ganfeng Lithium started its newest mining project in Salta, Argentina. Additionally, Rio Tinto aimed to enter the lithium market by buying US-based Arcadium Lithium for $6.7 billion.
