For the Quarter Ending June 2025
North America
• The Lithium Hydroxide Spot Price Index in the U.S. dropped by 3.2% in Q2 2025, with prices declining to USD 8,600/MT by the end of June.
• Why did the price of Lithium Hydroxide change in July 2025 in USA? The Price Index continued to decline, driven by excess inventory, limited spot buying, and short-term purchasing patterns by downstream users.
• The Lithium Hydroxide Production Cost Trend remained soft due to low spodumene concentrate prices and reduced output at some U.S. hydroxide conversion facilities.
• The Lithium Hydroxide Demand Outlook stayed muted as cell and pack manufacturers operated cautiously, focusing on just-in-time procurement amid policy uncertainty and reduced EV tax incentives.
• The ESS sector offered long-term promise, but most utility-scale projects had already secured materials, limiting short-term spot demand.
• Domestic lithium initiatives such as Tesla’s Texas refinery were in progress but failed to shift short-term dynamics.
• The Lithium Hydroxide Forecast for Q3 2025 points to continued price weakness unless downstream confidence improves, or federal incentive structures are reinstated.
Asia-Pacific
• The Lithium Hydroxide Spot Price Index in China posted a sharp 11.4% decline in Q2 2025, to USD 7,150/MT by end-June.
• Why did the price of Lithium Hydroxide change in July 2025 in China? The Price Index saw another downward adjustment, as sluggish demand, excess inventories, and low-cost imports sustained downward momentum.
• The Lithium Hydroxide Production Cost Trend was undermined by weaker spodumene prices and high operational costs. Some facilities diverted output toward lithium carbonate to manage stock levels.
• The Lithium Hydroxide Demand Outlook remained weak, especially from high-nickel ternary cathode sectors. Battery manufacturers stuck to short-term contracts, while EV growth was skewed toward LFP chemistry.
• Despite China’s NEV sales surpassing 1 million units in May, the impact on lithium hydroxide consumption was limited due to chemistry mismatch and procurement delays.
• High Q1 production, record March–April imports, and firm U.S. dollar also weighed on prices.
• The Lithium Hydroxide Forecast suggests further weakness through Q3 unless there’s a rebound in ternary battery installations or cathode makers ramp up output.
Europe
• The Lithium Hydroxide Spot Price Index in Belgium fell by 3.2% in Q2 2025, with values declining from USD 9,700/MT in April to USD 8,500/MT by the end of June.
• Why did the price of Lithium Hydroxide change in July 2025 in Belgium? The Price Index recorded a further drop, driven by persistent oversupply, steady Chilean imports, and subdued buying from cathode and battery material manufacturers.
• The Lithium Hydroxide Production Cost Trend remained compressed, as producers like SQM and Albemarle delayed expansion plans and focused on cost efficiency amid falling margins.
• The Lithium Hydroxide Demand Outlook in Europe was cautious. Battery producers limited their offtake, citing high warehouse inventories and macroeconomic uncertainty. Sodium-ion alternatives were also under consideration.
• EV registrations rose modestly to ~325,000 in May, but the shift toward hybrids and PHEVs reduced hydroxide consumption intensity.
• Energy storage remained a stabilizing factor, but reliance on LFP batteries in this sector offered little upside for hydroxide demand.
• The Lithium Hydroxide Forecast for Europe suggests prices may stay under pressure through Q3, unless restocking picks up or trade routes from Asia are disrupted.
For the Quarter Ending March 2025
North America
During the first quarter of 2025, the U.S. lithium hydroxide market continued to navigate a complex landscape shaped by persistent global oversupply, fluctuating EV demand, and shifting trade dynamics. Prices showed a consistent downward trend throughout the quarter, largely influenced by cheaper imports, high inventory levels, and subdued domestic demand. In January, market conditions were strained by oversupply and softened downstream demand due to seasonal restocking and holiday-related slowdowns.
While imports from Chile and Argentina remained robust, U.S. lithium salt imports declined by 11% year-over-year in 2024, reflecting reduced EV adoption and inventory destocking. Despite muted short-term demand, the Energy Storage System (ESS) sector and long-term EV projections offered support for future growth. Manufacturing dynamics were defined by expanding capacity in major exporting nations. Chile’s lithium exports surged in January, and production is forecasted to increase by 7% in 2025, reaching 305,000 tons.
However, the anticipated global surplus of 141,000 tons has kept pressure on pricing. Producers like SQM announced spending cutbacks in response to declining prices. On the demand side, EV sales in the U.S. and Canada showed resilience, increasing 20% year-over-year in February. Government incentives and infrastructure improvements supported this trend. However, concerns about potential policy reversals under a new U.S. administration created uncertainty around long-term market stability and incentive structures.
APAC
In the first quarter of 2025, lithium hydroxide prices in China experienced a gradual but steady decline, influenced by a combination of weak spot demand, constrained supply due to maintenance activities, and high raw material costs. Despite stable demand from ternary cathode material manufacturers, especially in the 8-series segment, it was not enough to offset reduced output caused by the Chinese New Year shutdowns and ongoing smelting sector weaknesses.
Production levels hit recent lows in February due to maintenance and holiday-related shutdowns. While output showed signs of recovery in March as production schedules stabilized, the growth remained subdued. Some producers even began shifting focus toward lithium carbonate to mitigate cost pressures. On the demand side, a conservative approach prevailed throughout Q1. Manufacturers of ternary cathode materials maintained operations primarily through existing inventories, with limited interest in large spot orders.
As the quarter progressed, purchasing activity remained weak, with customers showing low urgency to restock amid ongoing price declines. Although China’s NEV sales rebounded year-over-year due to extended trade-in subsidies, month-over-month figures dropped significantly in February, influenced by seasonal effects and holiday closures. By the end of March, increased willingness to sell among producers and fading buyer resistance led to more flexible transaction terms.
Europe
During the first quarter of 2025, lithium hydroxide prices in Belgium continued their downward trajectory due to persistent global oversupply, subdued demand, and increased imports of cheaper materials. Despite this, the market began showing initial signs of stabilization, supported by steady EV adoption in Europe and adjustments in global production strategies.
In January, weak downstream demand, driven by seasonal restocking and elevated inventories, contributed to a 1.9% price drop. As the month progressed, market sentiment remained cautious amid global surplus concerns. Chile, a major supplier to the EU, reported a sharp year-over-year increase in lithium exports, signaling resilient supply. However, production setbacks in Africa and Australia slightly eased oversupply concerns.
Demand remained sluggish across the quarter, though growth is anticipated, with lithium usage in EV batteries and energy storage systems expected to rise significantly. The EU’s stricter emissions targets and increased support for EV infrastructure contributed to a 20% year-over-year increase in regional EV sales, offering mid-to-long-term support for lithium demand. By March, the market remained under pressure from global surplus and modest demand recovery, leading to another minor price decline.
For the Quarter Ending December 2024
North America
The US Lithium Hydroxide market in Q4 2024 exhibited a volatile price trajectory, primarily driven by persistent oversupply and subdued demand. The quarter commenced with relatively stable prices amidst an oversupplied market, with an excess supply outpacing current demand, leading to downward pressure on prices.
While there were initial signs of production cuts by Chinese producers, their impact was limited. Subsequently, prices experienced a brief period of upward movement driven by the import of higher-priced goods. However, this was short-lived, as prices declined significantly towards the end of the quarter due to continued oversupply, sluggish demand from battery manufacturers, and the import of cheaper goods.
The demand for lithium hydroxide remained subdued throughout the quarter, impacted by factors such as cautious purchasing behavior from battery manufacturers and EV makers, concerns about tightening regulations in key markets, and a global economic slowdown. Despite the challenges, the US EV market continued to grow, albeit at a slower pace than initially anticipated. However, the impact of this growth on lithium hydroxide demand was limited due to the prevailing oversupply conditions. The continued robust production from major producers like SQM in Chile further exacerbated the oversupply situation, exerting significant downward pressure on prices.
APAC
The APAC Lithium Hydroxide market in Q4 2024 exhibited a volatile price trajectory, influenced by a complex interplay of supply and demand factors. The quarter commenced with a surge in prices driven by pre-holiday inventory buildup and robust demand from downstream sectors, particularly for high-nickel ternary cathode materials. However, this was followed by a period of price stability and even slight declines due to factors such as lower-than-expected production cuts, increased supply from new projects, and a slowdown in consumer demand. Subsequently, prices rebounded in November, driven by improved market sentiment and production cuts at an overseas mine. However, this upward trend was short-lived, as prices declined again in December due to reduced consumer demand, high inventory levels, and cautious purchasing behavior ahead of the year-end. Throughout the quarter, supply and demand dynamics fluctuated significantly. While supply increased due to higher production from spodumene and lithium mica, it was partially offset by production halts for maintenance at some lithium salt factories. Demand remained robust, driven by strong NEV sales in China, although seasonal weakness was observed towards the end of the quarter.
Europe
The European Lithium Hydroxide market in Q4 2024 exhibited a volatile price trajectory, primarily influenced by the dynamics of the global battery market. The quarter commenced with a period of relative price stability amidst an oversupplied 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 prices. While demand from the EV sector in Europe 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 European Lithium Hydroxide 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.
For the Quarter Ending September 2024
North America
In Q3 2024, the Lithium Hydroxide market in North America experienced a significant decline in prices, with the USA facing the most substantial impact. The market was heavily influenced by multiple factors leading to the downward trend. Oversupply issues, low demand, and excess inventory levels were key drivers behind the price decrease.
Furthermore, the slowdown in electric vehicle (EV) sales and uncertainties in the energy storage sector added to the negative sentiment. The quarter recorded a substantial price drop of 60% compared to the same period last year, highlighting the drastic shift in market conditions. Additionally, there was a notable 20% decrease from the previous quarter, indicating a continuous downward trajectory.
The second half of the quarter saw prices falling by 11% compared to the first half of the quarter, reflecting the sustained bearish outlook. Ultimately, the quarter concluded with Lithium Hydroxide Battery grade DDP USGC prices in the USA settling at USD 11600/MT, underlining the persisting negative pricing environment throughout Q3.
APAC
In Q3 2024, the lithium hydroxide market in the APAC region experienced a significant decline in prices, with China seeing the most pronounced reductions. This downturn was driven by weak consumer demand, concerns of oversupply, and consistently low demand from downstream lithium-ion battery manufacturing sectors. Towards the end of quarter, customer supply began to align with orders, ternary cathode material producers showed little need for additional external procurement, resulting in a relatively stagnant market. Market sentiment remained stable, with price quotes fluctuating due to changes in lithium carbonate prices but generally staying high. Market sentiment remained negative throughout the quarter, with prices continuing to drop. Year-over-year, Q3 2024 prices decreased by 65%, marking a substantial downward trend. On a quarter-on-quarter basis, prices fell by 15.3%, highlighting the ongoing deterioration. The second half of the quarter saw an additional 8% decline compared to the first half, reflecting a persistent downward trajectory. The quarter closed with lithium hydroxide battery grade prices at USD 9300/MT FOB Shenzhen, illustrating the ongoing challenging market conditions and negative pricing trends.
Europe
Throughout Q3 2024, the market for Lithium Hydroxide in Europe experienced a continuous decline in prices, reflecting a negative sentiment influenced by several key factors. The oversupply situation, coupled with weak market sentiment in Asia and North America, has been a significant driver of the decreasing prices. The bearish market conditions, along with moderate supply levels and low to moderate demand, have contributed to the ongoing price downtrend. Additionally, the struggles faced by European automakers in the global electric vehicle market, high production costs, and limited consumer demand for battery electric vehicles have further impacted the lithium market. Belgium, in particular, has seen the most significant price changes within the region. The substantial decrease of 52% compared to the same quarter last year underscores the challenging market environment. Moreover, the recorded -14% change from the previous quarter and the -11% difference between the first and second half of the quarter highlight the consistent downward trend in pricing. The quarter-ending price of USD 11500/MT of Lithium Hydroxide Battery Grade DDP Antwerp in Belgium reflects the prevailing negative pricing environment in Q3 2024.
Frequently Asked Questions (FAQs)
1. Why did Lithium Hydroxide prices decline in Q2 2025 across all major regions?
Prices dropped due to global oversupply, cautious downstream buying, and high end-user inventories, especially in the U.S., China, and Europe. Even with growing EV sales, demand hasn’t scaled fast enough to absorb excess stocks.
2. What is the short-term Lithium Hydroxide Forecast for Q3 2025?
The forecast remains bearish for most regions. Prices are expected to stay under pressure due to persistent surplus, subdued procurement, and limited cost support unless demand accelerates sharply.
3. How is the Lithium Hydroxide Production Cost Trend impacting market dynamics?
Lower feedstock (spodumene) prices and delayed hydroxide expansion plans have trimmed production margins. This has discouraged new investment but hasn’t yet resulted in meaningful output cuts.
4. Which end-use sectors are supporting Lithium Hydroxide Demand Outlook currently?
Energy storage systems (ESS) remain the key growth segment, especially in the U.S. and China. However, much of this demand is long-term and tied to LFP chemistries, limiting its impact on near-term hydroxide prices.
