Lithium price slump on concerns for China's demand prospects

The news: Lithium prices have taken a battering amid concerns of weakening demand in China, the world's biggest EV market, Bloomberg reports.

The numbers: Lithium carbonate prices slumped to 166,500 yuan ($35,480) a tonne last week, a more than 70% discount to last November's record 597,500 yuan peak. EV sales growth in China slowed to 37% from a year earlier, well below the 50% global average, according to Counterpoint Research figures.

The context: Lithium demand in China generally picks up in the fourth quarter but this hasn't materialised in 2023, indicated by weak restocking figures and battery makers looking to draw down significant inventories.

What they said: "For the rest of the year, the fundamental focus appears to be on a seasonal uptick in Chinese EV sales, and we think any disappointment relative to historical norms could put accelerated downward pressure on prices," Goldman Sachs analysis said in a research note.