Good News & Bad News, page-695

Chinese lithium hydroxide prices a saw 15.5% (EXW China) increase month-on-month in April according to Benchmark’s most recent Lithium Price Assessment. Meanwhile, battery-grade lithium carbonate prices rose by just 6.6% (EXW China) across the same period, with a flattening of movement in the second half of the month caused by extremely limited supply capping spot liquidity, compared to previous gains of 14.2% month-on-month in March and 19.1% m-o-m in February.
Lithium iron phosphate (LFP) cathode chemistry take-up has surged beyond expectation in China this year impacting demand for lithium carbonate. The market has also started to see rising demand for the previously little-utilized high nickel chemistries, primarily NCM 811, as the product undergoes commercial deployment following an extended period of R&D.As such this has seen hydroxide use increase in the Chinese market and has begun to push up domestic prices, Benchmark said. Additionally, because of the more restricted supply structure for hydroxide due to more limited conversion capacity the chemical is more susceptible to supply tightness with more modest increases in market demand driving the chemical into deficit.