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Lithium prices fall to five-month lows amid oversupply fears
Prices for lithium carbonate on China’s Guangzhou Futures Exchange slid to 136,800 yuan per tonne, about 30% below multi-year highs reached in mid-May.
Lithium prices have dropped to a five-month low as previously idled mine capacity returns, raising concerns about a large oversupply, OilPrice reports. On the Guangzhou Futures Exchange, the most active lithium carbonate contract fell to 136,800 yuan, or about $20,210, per tonne on Wednesday. That move leaves prices nearly 30% below multi-year highs reached in mid-May.
The decline is linked to accelerating mine restarts and expansions across China and Australia. In China, EV battery maker Contemporary Amperex Technology Co. (CATL) secured a safety production permit for its flagship Jianxiawo lithium mine in Yichun, clearing a final regulatory step to resume output after a nearly one-year suspension.
The Jianxiawo mine was suspended in August 2025 after its operating license expired amid a broader environmental and compliance crackdown covering environmental compliance, waste management and tailings safety in Yichun. The project is estimated to contain 960 million tonnes of porcelain stone ore, equivalent to about 2.66 million tonnes of lithium oxide, and is capable of producing 100,000 to 150,000 tonnes of lithium carbonate equivalent annually. At full production, it would supply roughly 3% of global lithium output and between 8% and 10% of China’s domestic production.