China’s production of battery-grade lithium carbonate surged by 45% in 2024, reaching 670,000 metric tons, according to the Ministry of Industry and Information Technology (MIIT).
The announcement comes as lithium prices have experienced a significant decline from their November 2022 peak of nearly 600,000 yuan per ton, pushing companies to halt mining operations worldwide. Despite this, experts predict strong demand will outpace supply in 2025, fueled by China’s robust support for its electric vehicle (EV) market.
In July 2024, China doubled its EV subsidies, and by mid-December, more than 5 million cars had benefited from these incentives. The global lithium supply shortage is expected to shrink significantly in 2025, with lithium carbonate (LCE) supply falling to around 80,000 tons equivalent, down from nearly 150,000 tons in 2024.
China’s production of battery-grade lithium hydroxide also saw a 26% year-on-year increase, reaching 360,000 tons in 2024.
