Lithium carbonate prices fell toward CNY 85,000 per tonne in...

Lithium carbonate prices fell toward CNY 85,000 per tonne in July, the lowest in over three years, as the surplus of raw materials for electric vehicle battery manufacturers continued to dictate low prices across the sector. Lithium miners and producers continued to expand capacity and hunt for new reserves, magnifying expectations of oversupply amid the fallout of battery gluts due to government subsidies for firms across the supply chain. Additionally, hopes of eventual balance in the market drove Chile to signal it would aim to double output over the next decade. Further adding to the bearish pressure, the EU put barriers on Chinese EV producers with tariffs of up to 38% in response to subsidies-supported dumping starting this week. The measures added to sweeping tariffs from the US, which quadrupled duties on Chinese EVs to 100%, pushing against input materials for battery producers. This contributed to the 15% drop monthly drop in Chinese new energy vehicle exports in June.

The grim fundamentals