Lithium carbonate prices steadied above the CNY 300,000 per tonne mark since touching the three-month high of CNY 312,500 in early June as markets assessed robust demand for battery inputs against signs that producers are catching up to provide stronger supply levels. The latest data showed that NEV sales in China jumped by 60% year-on-year in May, extending the 110% surge in April and marking nearly one-third of the market share, erasing concerns about poor demand levels at the start of the year. During the first quarter, the drop in demand coincided with a significant oversupply of batteries. Producers took advantage of the final inflows of government subsidies and ramped up battery output until the end of 2022, creating unsustainably high inventory levels. The developments coincide with considerable efforts by the Chinese government to boost input material production in the longer term, easing buying competition from battery manufacturers and reducing shortage risks.
