US Lithium Carbonate Prices Hold Steady Amidst Global Price Fluctuations and EV Market Challenges

Texas, USA: Entering April 2024, the Lithium Carbonate market in the USA has experienced further stability, with prices remaining within a consistent range. Over the past few sessions, prices have shown no significant fluctuations. Recent Lithium Carbonate assessments in the US have been comparable to their European counterparts and have been priced at a premium compared to CIF seaborne Asia Lithium Carbonate prices.

However, in other regions, particularly Europe, spot prices for battery-grade Lithium Carbonate have experienced further declines. This downward trend has been attributed to ongoing weak demand and limited market activity, which were further exacerbated by the Easter holidays in the region, according to industry players. In the first week of April 2024, discussions for Lithium Carbonate DDP USGC stood at USD 15,100/MT.

In the United States, new vehicle sales saw a 5.1% increase from January to March, indicating resilience in the market despite high interest rates. However, the growth of electric vehicle (EV) sales slowed during the same period. Mainstream buyers showed reluctance due to concerns over limited range and a lack of charging infrastructure. Electric vehicle sales only grew by 3.3% to nearly 270,000 units in the first quarter of 2024, significantly below the 47% growth seen last year, which had driven record sales and a 7.6% market share.

The deceleration in EV sales, particularly led by Tesla, underscores automakers' concerns that they may have rushed into the electric vehicle market too quickly. The EV segment's share of total U.S. sales dropped to 7.15% in the first quarter. Tesla's global sales experienced a decline of almost 9%, which the company attributed to various factors including factory modifications, shipping delays in the Red Sea, and a power outage at its factory in Germany. These challenges contributed to the overall slowdown in electric vehicle sales in the U.S.

On the pricing front, Lithium Carbonate prices in the United States remained relatively stable over the past few weeks, with little movement reported by most industry experts. Despite recent Lithium Carbonate price increases in the domestic Chinese market, these changes have not yet impacted the international Lithium Carbonate market. On the other hand, according to market participants, prices of Lithium Carbonate in Europe continue to decline, with customers increasingly seeking lower prices. The fundamentals of the market appear unchanged from their perspective. Meanwhile, a seller of Lithium hydroxide mentioned that they are attempting to offer at higher levels internationally, citing a strengthening Chinese domestic market, but haven't yet finalized deals at these levels.

According to ChemAnalyst pricing intelligence, the Lithium Carbonate market is anticipated to demonstrate improvement in the upcoming weeks, with hopes of increased electric vehicle sales and a better consumer-friendly economic situation.