US Lithium Carbonate Prices Rise in May 2024 Slightly Amid Stable Demand

Texas (USA): The US Lithium Carbonate prices have held steady throughout May, with a recent assessment noting a marginal increase. In the initial two weeks, Lithium Carbonate prices remained unchanged in the US domestic market due to a lack of significant market developments. Over the past few sessions, prices have continued to remain stable. The demand for Lithium Carbonate in the downstream Lithium-ion battery sector has been moderate.

Amid an oversupply situation, sellers in South America have lowered their offered quotations for Lithium Carbonate. As of May 24, 2024, the discussed prices of Lithium Carbonate Battery Grade DDP USGC were USD 14,800/MT, an increase of 2.1% from the previous week.

Downstream demand from the domestic automotive sector has remained steady at a moderate level, with ample Lithium Carbonate available in the local market. However, consumer inquiries have been sluggish, and new purchase orders have continued to decline. Industry experts note that consumers are hesitant to make substantial purchases of Lithium Carbonate at elevated prices in downstream and terminal markets. After a strong performance in March, many automakers experienced subdued sales in April, though this was partly offset by remarkable growth in electric vehicle sales.

Reports of a slowdown in electric vehicle sales this year have been a significant concern for many automakers. However, new data suggests the downturn may be shorter and less severe than initially anticipated. According to reports, Q1 sales data indicates that the supposed EV slowdown in the U.S. appears to be a temporary blip, with many automakers experiencing year-over-year sales growth. Despite concerns about demand, consumer purchases remain strong. Although some were disappointed with Tesla's deliveries, the company remains the only high-volume EV manufacturer in the U.S.

On the other hand, the world’s Lithium miners, responding to unprecedented demand and volatile prices, are transforming the way Lithium Carbonate is traded. As Lithium becomes essential to the global energy transition, the industry is undergoing a gradual revolution, pushing for more transparent, industry-wide pricing. Despite an underwhelming start to the year for US electric vehicle sales, with flat first-quarter numbers, Ford scaling back expansion plans, and Tesla laying off 10% of its global workforce, the outlook isn't entirely bleak. These negative indicators only tell part of the story. According to the latest assessment by the ChemAnalyst database, the prices of Lithium Carbonate are anticipated to trend upward in the upcoming weeks due to increased consumption and a rise in consumer demand.