China is experiencing a rapid increase in lithium prices, driven by the growing demand for battery cells and the active development of energy storage systems. It is expected that the annual growth of new energy storage capacities will set records at least until 2035.
This is reported by Finway
Growing Demand for Lithium and Batteries
Recently, the Guangzhou Futures Exchange has recorded a five-day increase in the most popular lithium carbonate contract. On the spot market, prices have reached a two-year high. Although current prices are still approximately 85% lower than the record set in 2022, the upward trend remains steady.
Demand for energy storage systems (ESS) is rising due to China’s policies and global interest in equipment that stabilizes power grids and provides reliable power for data centers engaged in artificial intelligence. The Chinese government plans to increase energy storage capacities to 180 gigawatts by 2027 to better utilize wind and solar energy. This leads to increased demand for key battery components, among which lithium is one of the most important.
Global Trends and Industry Forecasts
The active participation of international companies is also influencing the market. In particular, South Korea’s Samsung SDI Co. has repurposed part of its electric vehicle battery production lines to ramp up ESS production in the United States. Australian mining company PLS Ltd. has reported that the sector is growing “by leaps and bounds.”
“According to BloombergNEF, the volumes of new energy storage capacities worldwide will set records annually until 2035, strengthening the positions of China and the United States as leading markets.”
Chris Williams, an analyst at consulting firm Adamas Intelligence, notes that by 2025, demand for electric vehicle batteries will increase by 20%, while demand for energy storage systems will rise by 50%. These factors are shaping the dynamics of lithium prices and the overall development of the industry.