2025.12.2213:48:05UTC+00Lithium Rises to 18-Month High

In December, lithium carbonate futures in China reached CNY 99,000 per tonne, marking an 18-month high, as supply restrictions intersected with predictions of increased demand. This development followed the announcement by the Bureau of Natural Resources of Yichun in the Jiangxi province—a key lithium mining area in China—that 27 mining permits would be revoked early next year. This decision aligns with the prior halt in operations at CATL's Jianxiawo lithium mine, reflecting the Chinese government's strategy to curb capacity in various industries in an effort to avert the deflationary pressures associated with relentless competition driving prices down. Concurrently, production of new energy vehicles in China soared by 20.6% year-over-year, reaching a record 1.823 million units in November. Furthermore, Beijing declared its intention to double the country's electric vehicle charging capacity to 180 gigawatts by 2027, a move aimed at bolstering lithium-dependent energy storage systems with compensation plans for power storage infrastructure.