For the Quarter Ending March 2025
North America
During the first quarter of 2025, the lithium hexafluorophosphate market in the United States exhibited significant volatility, shaped by persistent global oversupply, sluggish upstream lithium fluoride pricing, policy uncertainty, and fluctuating demand from downstream battery sectors. In January, prices weakened in line with falling lithium fluoride costs, which declined due to cheaper imports and weak support from lithium carbonate and hydrogen fluoride.
While broader lithium salt markets showed early signs of stabilization—thanks to a modest recovery in electric vehicle (EV) and energy storage system (ESS) production—the market remained under pressure from elevated inventories and cautious procurement strategies. In February, overall price momentum remained restrained amid global oversupply and muted restocking demand. Policy changes under the Trump administration introduced fresh uncertainty to EV-related incentives, clouding demand expectations for used in lithium-ion batteries.
By March, the market continued to face pressure from cheaper raw materials and reserved demand among cathode and electrolyte producers. Still, there were positive signs as combined EV sales in the U.S. and Canada surged 20% year-over-year in February, driven by tax incentives, expanded infrastructure, and broader EV model availability. This growing momentum in battery demand offers long-term potential for consumption, even as Q1 remained burdened by market surplus and inconsistent policy direction.
APAC
During the first quarter of 2025, China's lithium hexafluorophosphate market experienced overall price stability with minor fluctuations, largely dictated by balanced upstream and downstream dynamics, stable raw material costs, and conservative procurement behavior. While battery cell producers exerted some downward pressure, the market remained resilient due to cautious just-in-time purchasing and a balanced supply-demand outlook. Manufacturing activity remained aligned with demand, as producers operated with limited inventory buildup.
Electrolyte factory operating rates declined from 41.6% in December to 36.87% in January and further dipped to 34.81% in February, driven by the seasonal demand slowdown and Chinese New Year disruptions. Holiday-related logistics slowdowns and production halts in late January led to a temporary supply constraint, though demand remained weak, keeping prices mostly in check. Manufacturers continued production based on orders, avoiding significant inventory buildup. Battery manufacturers showed slight signs of demand recovery, but cautious procurement strategies persisted.
On the cost side, upstream raw materials like phosphorus pentachloride saw increases, though other components remained relatively stable. In early March, prices rose slightly due to tighter raw material availability, particularly fluorite, driven by mine closures and exploration difficulties. Both electrolyte and producers-maintained order-based production, fostering a stable market environment. Although demand from the downstream battery sector gradually recovered, it remained below expectations, contributing to subdued price activity.
Europe
In the first quarter of 2025, the lithium hexafluorophosphate market in Europe reflected the prolonged weakness of its upstream input, lithium fluoride, and the broader lithium compound landscape. The surplus in lithium hydroxide—a critical upstream feedstock for lithium fluoride—continued to trickle down, pressuring prices throughout the quarter. In January, lithium fluoride prices declined following a 1.9% drop in lithium hydroxide, reducing production costs and further weakening pricing across Belgium and other EU markets.
Downstream demand, especially from the battery and specialty electrolyte sectors, remained subdued during the early part of the year. Low seasonal demand and excessive inventories held back purchases from electrolyte manufacturers, despite some early restocking efforts. EV and ESS battery production started slowing, further reducing offtake. The sluggish consumer electronics segment added to the strain on demand, and most buyers adopted a wait-and-see approach amid weak price signals.
However, optimism began to emerge by March as Chinese buyers became more active ahead of the Lunar New Year, providing indirect support to the European market through raw material tightening. Meanwhile, an improving EV policy environment in Europe led to a 20% year-over-year rise in EV adoption, laying a stronger foundation for battery material consumption. As battery cell production ramps up in response, demand is expected to benefit in the coming quarters, particularly in high-performance applications requiring stable electrolyte formulations.
For the Quarter Ending December 2024
North America
The North American Lithium Hexafluorophosphate (LiPF6) market in Q4 2024 exhibited a mixed price trajectory, largely influenced by the dynamics of the global battery market. Initially, the quarter witnessed a period of relative price stability amidst an oversupplied electrolyte market and reduced consumer inquiries.
This oversupply, driven by factors such as increased production capacity and lower-than-expected demand from battery manufacturers, exerted significant downward pressure on LiPF6 prices. While demand from the EV sector in North America showed some growth, it was insufficient to offset the impact of the oversupplied market. Towards the end of the quarter, prices began to decline further, primarily due to cautious purchasing behavior from battery manufacturers and EV makers.
This cautious approach was influenced by factors such as tightening regulations in key markets, rising interest rates, and concerns about a potential economic slowdown. Despite these challenges, the North American LiPF6 market demonstrated some resilience. The growing demand for EVs in the region, albeit at a slower pace compared to other regions, continued to support the market. However, the overall market sentiment remained subdued, with concerns about oversupply and potential price volatility persisting.
APAC
Q4 2024 witnessed a volatile price trend for Lithium Hexafluorophosphate (LiPF6) in the APAC region, primarily driven by fluctuations in both supply and demand dynamics. The quarter began with a surge in prices due to robust demand driven by pre-holiday inventory buildup and improved consumer sentiment. However, this was followed by a slight dip in prices in the third week of October as weak consumer demand impacted ternary cathode material production. Subsequently, prices rebounded in November and December, primarily driven by increased cost pressures from rising upstream raw material prices like hydrofluoric acid, fluorite, and lithium fluoride). While supply-side constraints, such as production halts and maintenance shutdowns, initially supported price increases, the impact was mitigated by unexpected production levels and new project advancements. Demand remained moderate to high throughout the quarter, supported by strong NEV sales in China, although fluctuations were observed due to varying levels of demand from different cathode material producers. Overall, the Q4 2024 price trend for LiPF6 in the APAC region exhibited a volatile trajectory, with prices experiencing both upward and downward movements in response to shifting market dynamics.
Europe
The European Lithium Hexafluorophosphate (LiPF6) market in Q4 2024 exhibited a mixed price trajectory. The quarter commenced with a bearish trend, primarily driven by a significant influx of cheaper imports from Asia. Declining freight charges and increased container availability further exacerbated the downward pressure on prices. While Chinese producers-initiated efforts to curb output, these measures were proven insufficient to stabilize the market. A notable shift occurred mid-quarter, with prices experiencing a gradual increase. This upward trend was primarily attributed to rising production costs in major exporting nations, particularly driven by increased lithium carbonate and lithium fluoride prices. However, European demand remained relatively subdued, with limited impact on the overall market dynamics. Towards the end of the quarter, prices experienced further appreciation due to the arrival of higher-priced imports from China. Rising demand for electrolytes from Chinese battery cell manufacturers, coupled with increased production costs, significantly impacted export prices. Despite this upward pressure, European demand remained weak, with no significant supply shortages observed in the region.
For the Quarter Ending September 2024
North America
In Q3 2024, the lithium hexafluorophosphate market in North America experienced a notable downturn, with prices showing a significant decline compared to the same quarter last year. This drop can be attributed to several factors impacting market dynamics, including weak demand, high inventory levels, and sluggish procurement activities. The market also faced downward pressure due to increased imports and limited cost support from upstream sectors, further contributing to the bearish sentiment.
In the USA, where the most substantial price changes were observed, the trend closely followed the broader North American market. The quarter began with a decline in prices, reflecting ongoing challenges, and the downturn persisted through the latter half of the period, indicating a sustained price drop.
By the end of the quarter, lithium hexafluorophosphate prices settled at lower levels, underlining the difficult market environment characterized by oversupply and low demand. The pricing trend for lithium hexafluorophosphate in North America throughout Q3 2024 has been consistently negative, marked by a combination of excess supply, lacklustre demand, and challenging conditions across both upstream and downstream markets.
APAC
In Q3 2024, the pricing environment for Lithium Hexafluorophosphate in the APAC region witnessed a significant decline, with market prices experiencing a downward trend. Several factors contributed to this decrease, including weak consumer demand, oversupply conditions, and subdued purchasing activities in the downstream battery manufacturing sector. These conditions resulted in a bearish sentiment prevailing throughout the quarter. China, in particular, observed the most substantial price changes, with prices dropping significantly. The market trends in China reflected the overall regional scenario, with prices influenced by the ongoing challenges of oversupply and lacklustre demand. The quarter recorded a substantial decrease in prices compared to the same period last year, marking a significant -47% decline. Moreover, compared to the previous quarter in 2024, prices were down by 17%, indicating a continued downward trajectory. The second half of the quarter saw a further decline of 7% compared to the first half, highlighting the persistent negative trend. The quarter-ending price for Lithium Hexafluorophosphate FOB -Qingdao in China settled at USD 6880/MT, underscoring the prevailing downward pricing environment.
Europe
Throughout the third quarter of 2024, the European market for lithium hexafluorophosphate saw a steady decline in prices, driven by a combination of key factors contributing to negative market sentiment. The persistent oversupply, along with weakened demand in Asia and North America, played a significant role in the price downturn. Furthermore, limited support from upstream sectors compounded the pressure on lithium hexafluorophosphate prices during this period. Bearish market conditions, excess supply, and subdued demand exacerbated the ongoing price decline. European manufacturers faced additional challenges due to high production costs, reduced consumer demand, and deteriorating economic conditions, further straining the lithium hexafluorophosphate market. Belgium, in particular, witnessed the sharpest price fluctuations within the European region. The notable decrease compared to the same period last year reflects the challenging market landscape. Additionally, the quarter-on-quarter price shift, along with the difference between the first half and second halves of the quarter, underscores the persistent downward pricing trend throughout the third quarter of 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Lithium Hexafluorophosphate experienced nuanced price adjustments. Price increases were largely driven by rising shipping costs and unseasonal surges in ocean freight demand, compounded by logistical bottlenecks and increased restocking cycles from major importers, which strained the container market. Throughout Q2-24, the sales in the electric vehicle segment continued to pressurize the lithium hexafluorophosphate market.
Elevated freight charges, intensified by shipping capacity constraints and disruptions in major trade routes, significantly impacted the cost structure, leading to higher import costs for lithium carbonate and lithium fluoride, key precursors in Lithium Hexafluorophosphate production. In the USA, where price movements were most pronounced, trends reflected a complex interplay between steady downstream demand, especially from the growing hybrid vehicle market, and an oversupplied domestic market.
Despite stable downstream demand, the market faced a contrast between declining new purchase orders and rising freight and import costs, which together drove prices upwards. Overall, the pricing environment has been stable with a slight upward trend, influenced by logistical challenges and shifting demand dynamics, particularly in the North American automotive sector, amidst broader macroeconomic pressures.
APAC
In Q2 2024, the pricing landscape for Lithium Hexafluorophosphate in the APAC region has been predominantly characterized by a downward trend. Key factors contributing to the price decline include a steady increase in the production outputs from lithium producers, leading to an oversupply in the market. This increased availability has compounded the bearish sentiment, resulting in diminished spot market transactions. Additionally, the ongoing global economic challenges and reduced demand from the electric vehicle sector have exerted further downward pressure on prices. Specifically, the sluggish growth in the EV market, attributed to reduced subsidies and logistical constraints, has notably impacted demand for lithium-ion batteries, thereby affecting the consumption of Lithium Hexafluorophosphate. China has experienced the most significant price fluctuations. Overall trends reveal a marked decrease in prices, influenced by both global supply dynamics and local market conditions. The quarter-ending price for Lithium Hexafluorophosphate FOB-Qingdao in China stood at USD 7750 per metric tonne, reflecting the culmination of these negative influences. Seasonality has played a role, with Q2 traditionally witnessing lower demand, exacerbating the price drop. Comparing this quarter to Q2 2023, prices have plummeted by a staggering 52%, highlighting the severe market correction. Furthermore, a comparison between the first and second halves of Q2 2024 reveals an additional 7.5% decline in prices, underscoring persistent negative market sentiment. The overall pricing environment during Q2 2024 has been decidedly negative, driven by oversupply, weakened demand, and persistent logistical challenges.
Europe
In Q2 2024, the Lithium Hexafluorophosphate market in Europe displayed a largely stable pricing environment. The quarter was characterized by balanced supply and demand, with consistent production rates and stable upstream costs, particularly for essential raw materials. Although logistical issues, such as rising freight charges and congestion in key shipping routes, were present, they did not significantly impact the market. Demand from downstream sectors, particularly the electric vehicle industry, remained subdued due to reduced subsidies and economic uncertainties affecting consumer spending. Moreover, the slowdown in EV sales also led to weak procurement for the product. In Belgium, Lithium Hexafluorophosphate prices saw some fluctuations but generally remained stable over the quarter. Price trends throughout the period showed stability, with no significant percentage change between the first and second halves of the quarter, indicating a steady market sentiment. Overall, the market has maintained a stable pricing environment with a slight upward trend, influenced by logistical challenges and evolving demand dynamics in the European electric vehicle sector, despite broader macroeconomic pressures.
