Report Industry Investment Rating No relevant content provided. Core Views - The lithium carbonate market has experienced a decline after reaching a peak, with the relaxation of supply and weak demand exerting joint pressure on the market. The current market is in a weak and volatile stage after a downward break, and the core contradiction lies in the enhanced expectation of supply resumption and the weak terminal demand. The pressure of the marginal relaxation of supply begins to dominate the market, while the low inventory and bargain - hunting buying provide support below, but the overall price center has shifted downward [3]. Summary by Relevant Catalogs Lithium Salt Market Introduction - **Price Changes**: The price of lithium carbonate futures dropped from 152,080 yuan/ton to 143,860 yuan/ton, a weekly decline of 5.41%. The price of battery - grade lithium carbonate in the spot market decreased by 8.43% week - on - week to 145,000 yuan/ton. The price of industrial - grade lithium carbonate dropped from 155,250 yuan/ton to 141,750 yuan/ton, a decline of 8.70%. The price of electric - grade coarse - particle lithium hydroxide decreased from 150,850 yuan/ton to 140,800 yuan/ton, a decline of 6.66%. The price of electric - grade fine - powder lithium hydroxide dropped from 156,050 yuan/ton to 146,000 yuan/ton, a decline of 6.44%. The price of industrial - grade lithium hydroxide decreased from 145,550 yuan/ton to 135,500 yuan/ton, a decline of 6.90% [5]. - **Premium and Discount Changes**: The premium and discount of various raw materials and enterprises have decreased by 100 yuan/ton [8]. Lithium Salt Fundamentals - **Supply - China Carbonate Lithium Production**: No specific content provided. - **Supply - Production in Each Region**: No specific content provided. - **Supply - Production from Each Raw Material Source**: No specific content provided. - **Supply - China Lithium Hydroxide Production**: No specific content provided. - **Demand - Mid - and Down - stream Consumption**: No specific content provided. - **Import and Export - Lithium Ore Import**: No specific content provided. - **Import and Export - Lithium Ore Transportation**: No specific content provided. - **Import and Export - Lithium Ore Transportation Cost**: The freight rates from South Africa, Zimbabwe, and Nigeria for both bulk and container transportation have increased. For example, the bulk freight rate from South Africa increased from 26.00 to 30.00, a 15.38% increase; the container freight rate increased from 29.00 to 33.00, a 13.79% increase [29]. - **Import and Export - Lithium Carbonate**: No specific content provided. - **Import and Export - Seasonal Changes**: No specific content provided. - **Import and Export - Lithium Hydroxide**: No specific content provided. - **Inventory - Lithium Carbonate Social Inventory**: No specific content provided. - **Inventory - Lithium Carbonate Warehouse Receipts**: The total number of lithium carbonate warehouse receipts decreased from 36,403 to 34,318, a decrease of 2,085 [42]. - **Cost and Profit - Lithium Carbonate**: The production cost decreased with the decline of raw material prices. The cost of externally purchased lithium concentrate decreased by 4.06% week - on - week to 153,832 yuan/ton. The production profit of the externally purchased lithium concentrate route was - 8,832 yuan/ton, in a loss state [3]. Lithium Battery Fundamentals - **Market - Cathode Materials**: No specific content provided. - **Supply - Cathode Material Production**: No specific content provided. - **Supply - Electrolyte Price and Production**: No specific content provided. - **Demand - Cathode Material Consumption**: No specific content provided. - **Import and Export - Lithium Battery Materials**: No specific content provided. - **Import and Export - Batteries**: No specific content provided. - **Cost and Profit - Ternary Materials**: No specific content provided. - **Lithium Battery Recycling**: No specific content provided. - **New Energy Vehicles - Production and Sales**: No specific content provided. - **New Energy Vehicles - Other Important Data**: No specific content provided.

Market Overview - The price of lithium carbonate has significantly dropped, with the domestic battery-grade lithium carbonate (99.5%) settling at 162,500 CNY/ton, a decrease of approximately 10,000 CNY from the previous trading day [1] - The price for battery-grade lithium hydroxide (56.5% coarse particles) is now 152,500 CNY/ton, down by 5,000 CNY [1] - The futures market shows the main contract for lithium carbonate closing at 150,860 CNY/ton, a decline of 22,520 CNY, with a noticeable decrease in open interest [1] Price Trends - The ICC lithium battery settlement prices indicate a downward trend for various lithium products, with battery-grade lithium carbonate dropping from 17.25 to 16.25 CNY/kg, and lithium hydroxide from 15.75 to 15.25 CNY/kg [2] - The average price level for energy storage cells suggests that second-tier companies can withstand lithium carbonate prices around 161,000 CNY [4] Industry Focus - SQM's lithium carbonate sales in Chile reached 66,200 tons in Q4 2025, marking a 14% year-on-year increase and a 5% quarter-on-quarter increase, setting a new historical high [5] - Geely's lithium iron phosphate project in Jiangxi has officially commenced production, with an annual capacity of 30,000 tons for lithium iron phosphate cathode materials [5] Market Influences - The recent decline in lithium prices is attributed to several factors, including poor sales performance from car manufacturers during the extended Spring Festival holiday, with companies like Li Auto and NIO reporting declines of 12.5% and 4.5% respectively [7] - The ongoing conflict in the Middle East raises concerns about the demand for energy storage in that region, which is a significant export market for China, potentially leading to a slowdown in demand [7] - There are reports of major lithium battery manufacturers reducing orders, although material suppliers have not confirmed any order cuts [7] - The expectation is that the lithium carbonate market will undergo a corrective adjustment in the short term, with strong demand support around the 130,000 to 140,000 CNY range, indicating no significant change in the supply-demand dynamics [7]