Asia and European lithium carbonate markets stabilized mid-September 2025, after a prior 1.6% drop in prices this month, supported by robust Chilean supply and Chinese shipments. Solid South Korean vehicle production, spearheaded by a 7.1% surge in production and $5.5bn exports, underpinned raw material demand. Environmental vehicles spearheaded much of this growth, as domestic EV demand rose by a staggering 56% for BEVs and by 25% for hybrids. EU EV shipments rose by a staggering 54%, to offset softening US and Canadian shipments. These helped keep the cathode makers running at maximum capacities and hence the lithium carbonate usage unchanged. In Europe, steady import supply and rising German and French EV demand balanced the markets, without significant price movement. Long-term optimism persisted since the agreement of a deal between Mercedes-Benz and LG Energy Solution for 107 GWh batteries. In the days ahead, the Asia and European lithium carbonate markets would remain steady, with the demand forecast rising into Q4 2025.
Key Highlights
Asia lithium carbonate prices stabilized in mid-September after falling by 1.6% for the first half of the month, as consistent supply from China and Chile balanced strong demand. Although strong support from the EV market existed, the well-supplied market prevented upward pressure, which kept sentiment robust across Asia as well as Europe. The buyers continued to cover an abundant supply without notable disruptions.
In Asia, South Korea's lithium carbonate supply chain held steady as SQM's frequent Chilean shipments matched the recommissioning of Jiangte's Yichun Yinli mine in China. Albemarle's seasonal production shutdown, capping some global supply of lithium carbonate, was mitigated by spodumene-based flows as well as renewed Chinese supplies.
The South Korean EV boom continued as the mainstay supporting lithium carbonate demand. August domestic EV registered volume jumped by 23,740 units, boosting the year-to-date volume by 48%. Popularity favored by subsidies and strong customer demand for environment-friendly vehicles, cathode sellers maintained levels of production for domestic as well as export-market-based orders for batteries, and continued steady lithium carbonate consumption during September.
The country’s broader automotive industry also reinforced raw material demand. Car production climbed 7.1% year-on-year in August to 321,000 units, while domestic sales rose 8.3% to 139,000 units. Exports reached $5.5bn, up 8.6% year-on-year, driven by a sharp 54% rise in EV shipments to the EU, though exports to North America fell 8.3%.
Eco-friendly vehicles were the heart of the growth, which took up 50.7% of domestic demand. Hybrids rose by 25% to 43,800 vehicles, and BEVs by a staggering 56% to 24,300 vehicles. Exports of eco-friendly vehicles also rose by a staggering 27% to 69,500 vehicles, propelled by a staggering 78% surge in the latter's shipments. Such strong trends for mobility also augmented demand for lithium carbonate.
The European lithium carbonate market remained stable during mid-September due to import streams from South America and stable German and French EV demand. Though the growth of EVs remained less spectacular than the Asian one, stable downstream production of batteries and robust car sales maintained steady demand. The volatility of prices remained constrained due to stable upstream supply chains.
Multi-year supply agreements also supported long-term lithium carbonate usage confidence. Mercedes-Benz's multi-year supply agreement with LG Energy Solution for the supply of 107 GWh worth of batteries provided the Asian and European markets with demand security. Agreements of this kind connected raw material demand with the development of the automobile manufacturing sector, thereby reducing the risk of a sudden change.
Looking ahead, according to ChemAnalyst, Asia and Europe’s lithium carbonate markets are expected to remain balanced through September. With South Korea’s booming EV sales and Europe’s steady growth, demand fundamentals for lithium carbonate are expected to remain bullish. Stable supplies from Chile and China are likely to temper volatility, leaving the market on track for modest pricing and stronger demand into Q4 2025.
