China's lithium prices are close to the record high. The main production place of this electric vehicle battery raw material has a power crisis, which has led to further threats to the market that has been eaten.
According to Bloomberg, Sichuan Province, which accounts for more than one -fifth of China, has extended industrial power limit this week, and the local area is in the most severe heat waves in more than half a century.The supply interruption of Sichuan Province will further expand the amazing rise of lithium prices in the past year. Lithium carbonate prices have hit the highest level since April on Monday, and reported at 484,500 yuan (about S $ 98325) per ton.
"We estimate that the momentum of lithium prices will last for a while, and the spot price of lithium carbonate will soon rise to 500,000 yuan," said Susan Zou, an analyst at Rystad Energy."Automotive manufacturers and battery manufacturers have to deal with such high costs."
At the same time, Leah Chen, an analyst of S & P global commodities, pointed out that power outage may cause the market to be more imbalanced.
"If the power outage time is prolonged, it may lead to more obvious supply concerns, and it may promote the lithium price to rise further," Chen said.
"If the lithium production interruption continues throughout August and the inventory of some lithium factories is low, then the delivery of orders in September may be affected," the Zou of Rystad Energy said.
