(Bloomberg) — Lithium is enjoying a mini-revival on an uptick in Chinese electric vehicle demand and supply cuts, although analysts caution there’s still likely to be a surplus of the battery metal in 2025.
Chinese lithium carbonate spot prices have rallied around 8% since late October and are now at a three-month high, while futures on the Guangzhou exchange have jumped 13% so far this week. An expansion in Chinese subsidies encouraging people to trade in older cars has aided the nascent rebound in the metal that’s crucial to the energy transition.
EV manufacturers there are on track to hit ambitious annual sales targets, while restocking activity is picking up. There’s also speculation that Donald Trump’s election win may be encouraging Chinese battery makers to snap up lithium ahead of a likely trade war.
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