In recent years, several lithium carbonate projects have commenced production. Notable projects include Yongxing’s battery-grade lithium carbonate project with an annual output of 20,000 tons, and Tianli Energy’s lithium carbonate extraction project with an annual output of 10,000 tons in its first phase.

Furthermore, there are several projects slated for production throughout the year. For instance, Chengxin’s lithium salt project in Indonesia, set to produce 60,000 tons, is expected to be completed in the second half of this year. Sinomine’s high-purity lithium salt project, with an annual output of 35,000 tons, is planned for completion and production in the fourth quarter. Additionally, Corun’s first-phase battery-grade lithium carbonate plant, capable of producing 10,000 tons, is nearing completion and will soon be operational.

The implementation of these production projects has gradually increased the global supply of lithium, alleviating market supply and demand tensions to some extent. However, the improved supply-demand balance may intensify competition among suppliers, leading to downward pressure on lithium carbonate prices.

Notably, despite a strong recovery in previous periods, lithium carbonate prices have recently exhibited a downward trend. According to TrendForce’s research data, as of July 4th, the average market prices for domestic battery-grade lithium carbonate and industrial lithium carbonate remained unchanged from July 3rd, at RMB305,000/ton and RMB293,000/ton, respectively.

Overall, the specific impact on pricing will depend on the overall supply and demand dynamics of lithium carbonate. If the increase in supply aligns with the growth in demand, the downward pressure on prices may be relatively moderate. Additionally, factors such as the global economy, the development of the electric vehicle market, and policy changes will also influence the price of lithium carbonate.