Lithium Extends Plunge from 1-Year High

Lithium carbonate prices fell to CNY 74,600 per tonne from the one-year high of CNY 87,100 on August 19th as supply limitations out of China were tempered.

Reports indicated that mining activity in CATL's Jiangxi mine is due to restart production at a sooner date that markets expected after the major company.

The reopening reports countered the surge in lithium prices after CATL was unable to extend mining permits in the hub, which is responsible for around 3% of global supply.

Besides the direct increase in supply from operations in Jiangxi, the event limited the magnitude of supply cuts that the Chinese government was willing to pass to counter deflationary pressures in its fresh capacity-cutting overhaul.

In the meantime, Chinese electric vehicle producers continued to record strong sales volumes as companies resisted discounted prices to compete for market share, underpinning demand from battery manufacturers.