US Lithium Hydroxide Market Sees Stabilization Amidst Industry Shifts and Strategic Moves

Texas, USA: The US Lithium Hydroxide market experienced a further decline in February 2024 due to sustained weak demand and reluctance to purchase new goods. The influx of cheaper goods and oversupplied markets continued to heavily impact the Lithium Hydroxide market. According to industry experts, there is undoubtedly an oversupply in both the lithium carbonate and Lithium Hydroxide market, with China holding a dominant position. However, there are also significant players from the US in this market who play an important role in shaping the global Lithium Hydroxide market. Moreover, companies in North America have notably been ramping up their efforts to mine, extract, and refine lithium.

As of February 2024, the assessed price of Lithium Hydroxide (Battery Grade) DDP USGC was USD 14,750/MT.

Towards the end of February, the prices of Lithium Hydroxide stabilized in the US market. In recent developments, Exxon Mobil Corp intends to manufacture either battery-grade lithium carbonate or Lithium Hydroxide through its new direct-lithium extraction (DLE) project in the Smackover Formation in southern Arkansas. This decision will be based on the specific requirements of customers for lithium iron phosphate (LFP) or nickel cobalt manganese (NCM) batteries, as stated by the company.

Against the backdrop of increasing electric vehicle adoption and changing dynamics within the lithium carbonate and Lithium Hydroxide market, the energy storage sector in the US is undergoing rapid evolution. Record-breaking installations of lithium-ion battery arrays and significant reductions in lithium carbonate or Lithium Hydroxide prices are setting the stage for substantial transformation.

Additionally, industry players indicate that over the next decade, LFP batteries, recognized for their stable, safe performance and cost-effectiveness despite their relatively lower energy density, are projected to capture the largest market share. However, NCM will continue to be a significant market player as original equipment manufacturers (OEMs) in the US and Europe still view NCM as a solution to a range of concerns.

Regarding raw material prices, Albemarle released its results, and analysts were pleased with the company's decision to reduce spending, particularly considering the decline in lithium prices. Albemarle has announced plans to scale back a project in South Carolina and also disclosed layoffs at the end of January.

Without a doubt, as long as interest rates remain at elevated levels, the cost of capital will also be higher. Consequently, until electric vehicle (EV) demand rebounds, companies in this sector are likely to experience challenges.

According to ChemAnalyst pricing intelligence, the prices of Lithium Hydroxide are anticipated to remain stable in the upcoming weeks, backed by improved sentiments and demand from the consumer market.