US Lithium Hydroxide Firms 5.5% in February 2026 as Middle East Crisis Sends Shockwaves

Late-February activity in the US lithium-hydroxide market turned firmer as spot demand picked up after a mid-month lull. Early February saw volatility as cathode plants trimmed forward purchases while ample imports flowed into the Gulf Coast, keeping the market broadly balanced. Mid-month weakness reflected inventory digestion and wider availability of cheaper hydroxide; however, by month-end, buyers on the spot desk re-entered, shifting sentiment from neutral to cautiously firmer. The market moved from subdued buying to selective replenishment, with steady production and import coverage helping cap upside. Demand from the batteries and cathode sectors remained the dominant driver, yet its impact was tempered by cathode producers holding substantial stock and trimming near-term purchases. This backdrop limited the scale of gains even as benchmark levels rose. Supply dynamics supported imports of cheaper hydroxide, widening availability and easing near-term tightness in the Gulf Coast. Outlook points to a range-bound to stable pattern, with imports, steady inventories, and cautious contract-led demand offsetting downside pressure.