China’s lithium price surged on Monday after the chairman of major Chinese producer Ganfeng Lithium Group Co forecast demand growth of 30% or even 40% for the battery metal in 2026.
The most-traded lithium carbonate contract on the Guangzhou Futures Exchange rose 9% to close to an upper limit at 95,200 yuan ($13,401.28) per metric ton, its highest since June 2024.
The peak came after local media outlet Cailian reported the comments made by Li Liangbin in a conference speech.
Li also said demand growth could drive the lithium carbonate price above 150,000 yuan a ton, or even to 200,000 yuan.
Lithium carbonate prices have been rising recently in China, with a more than 17% rally this month, as investors predict booming demand from the energy storage sector.
Supply concerns related to the delayed reopening of CATL’s flagship Jianxiawo lithium mine in Yichun city, Jiangxi Province is also supporting the rise.
Reuters previous reported that CATL continued to tap external supplies of lithium ore to make lithium carbonate in November as the Jianxiawo mine remained closed.
Ganfeng Lithium’s shares rose 7.48%, Chengxin lithium stock was up 10.01%, and Tianqi Lithium increased by 9.87%.
($1 = 7.1038 Chinese yuan renminbi) (By Dylan Duan and Lewis Jackson; Editing by Alexander Smith)
