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| Author | Nathon Lee |
| Updated | June 05, 2025 |
Lithium price
Lithium carbonate and SC6 prices kept plunging in May.
Spot prices for battery-grade lithium carbonate stood at RMB 59,000–62,000/MT as of May 31, averaging RMB 61,000/MT at the month’s end, down 11.1% MoM. CIF prices for Chinese lithium spodumene concentrate (SC6) sat at USD 670–685/MT, averaging USD 678/MT, down 12.7% MoM.
In May, battery-grade lithium carbonate prices dropped sharply, with the primary futures contract LC2507 hitting a low of RMB 58,500/MT. Current mainstream quotes are based on the futures closing price plus a premium of RMB 300–1,000/MT. The oversupply of lithium carbonate persisted in May, and lower costs on the supply side have driven prices down. Australian miners significantly reduced costs in Q1 but did not cut production in the early phase of the current price decline . Strong shipment willingness from the mining side has triggered a downward spiral from spodumene prices to lithium salt prices. Customs data show that Chinese imports of lithium spodumene increased 20% MoM in April, leading to ongoing inventory build-up of lithium carbonate. QingHai Salt Lake Industry announced a lithium carbonate hedging plan on May 26, further fueling bearish market sentiment.
Looking ahead to June, the recent drop in spodumene prices is mainly due to traders with hedged positions adjusting their quotes in line with the market. Current prices have not yet fallen below operating costs of mainstream mines, but there is limited room for further price declines. On the demand side, downstream cathode material manufacturers have maintained high utilization rates in June but are unlikely to see significant growth beyond expectations. On the supply side, some producers completed maintenance in May, leading to a slight MoM increase in lithium salt output in June. Since upstream supply has yet to show effective adjustments, lithium carbonate may see further inventory pileups in the short term, exacerbating the supply-demand imbalance. Market prices remain in a downward trend, with lithium carbonate expected to fluctuate weakly around RMB 57,000-63,000/MT in June.
Energy-storage cell price
Prices for LFP cells in China rebounded, with a notable increase in residential storage cells.
LFP cell prices in China showed signs of recovery in May. As of May 31, the after-tax price range for 280 Ah LFP cells ranged RMB 0.24-0.33/Wh, with the average price staying flat MoM at RMB 0.285/Wh. Prices for 314 Ah LFP cells came in at RMB 0.25-0.33/Wh, averaging RMB 0.290/Wh. While the average remained flat MoM, price quote has moved upward. The after-tax price range for 100 Ah LFP cells was RMB 0.33-0.39/Wh, averaging RMB 0.36/Wh, up 5.2% MoM.
On May 12, following China-U.S. negotiations, tariffs on exports from China to the U.S. were temporarily cut to 10% for 90 days (May 14–August 12). After August 12, the tariff will return to 34%. This created a short-term export window, driving Chinese energy storage companies to speed up shipments to the U.S. Along with growing demand for utility-scale projects in Europe and emerging markets, the market showed signs of recovery, supporting prices of 314 Ah cells in China.
Since Q2, demand for residential storage in non-China markets has picked up, causing shortages of 100 Ah, 72 Ah, and 50 Ah cells. Prices for these cells have risen in June, with 100 Ah cells quoted near RMB 0.40/Wh by top manufacturers.
Battery-grade lithium carbonate prices fell sharply this month, driving down prices of key battery materials like LFP, graphite anodes, and electrolyte, though declines were moderate. Although cost support weakened, strong demand in non-China markets is expected to keep cell prices stable in June.
In the short term, the U.S. reduction of reciprocal tariffs has prompted Chinese energy storage companies to speed up contract signing and shipments. Meanwhile, growing investment in energy storage infrastructure across Europe, the Middle East, Australia, and South America is keeping demand outside China strong in Q2.
With higher profits in non-China markets, Chinese companies are shifting focus to global markets. The industry is moving from price wars and scale expansion to improving product quality and global strategy.
Companies now need to enhance product safety, stability, and intelligence to meet diverse needs, and build localized operations by understanding regional policies, markets, and cultures to stay competitive globally.