Lithium carbonate prices in China were at CNY 155,000 per tonne in March, trading at a narrow range since pulling back from the one-month high of CNY 173,000 earlier this month amid softer demand. Electric vehicle sales by top Chinese manufacturer BYD tanked 40% annually in February, a reversal from the growing trend in the previous months to raise concerns that the Chinese EV market may be slowing. The data magnifies worries that higher energy costs due to war in the Middle East could hamper large manufacturers from building input goods inventories, driving industrial metals to pull back. Still, Chinese supply was also expected to remain muted due to Beijing’s anti-involution campaign. Authorities have already canceled 27 mining permits in the lithium hub of Jiangxi, aligned with the earlier suspension of activity in CATL’s Jianxiawo lithium mine. Also, Zimbabwe suspended exports of lithium concentrates to put pressure on consumers to set up their refining operations in the country.
