The European market for lithium carbonate had stabilized by March 2025, which was a pleasant change from the February 2025 volatility.  Back in February, prices had taken a steep dive below $10,000 per metric ton, pulled down by an oversupply and electric vehicle (EV) sales that didn’t quite hit the mark. Now, though, this calm has brought some relief to the market participants tied to the supply network.

Those keeping an eye on the industry point to two main reasons for this stagnant phase. First, EV sales are picking up across the European Union, spurred by tough CO2 emission rules that kicked in earlier this year. This has given a lift to lithium carbonate, a material that powers EV batteries, helping things level off.

Secondly, the major players are modifying their strategies.  Albemarle, a leader in this industry, recently delayed the commissioning of its new lithium hydroxide production in Chengdu, China, until mid-2025 due to falling prices. The company is also easing off lithium hydroxide to focus more on lithium carbonate—a clear change in direction. Meanwhile, Chile’s SQM has its sights set on boosting lithium sales by about 15% in 2025, aiming for 238,000 metric tonnes of lithium carbonate equivalent.

Experts figure this steady pricing could hang around if supply and demand find their sync. Shutting down mines that are not generating any profits, combined with EVs rolling out of dealerships at a decent pace, might finally clear out the excess stock that has been dragging lithium carbonate prices down. Plus, with the world leaning harder into clean energy and electric transport, the need for battery materials like lithium carbonate is not fading away. Over in the UK, projects like Cornish Lithium are hustling to tap local deposits, hoping to cut the cord on overseas supplies and keep up with growing demand.

For the companies producing and buying battery raw material like lithium carbonate, the current lull is a chance to map out what’s could be next and strategize investments where it counts. With the globe racing toward an electric future, lithium carbonate’s role is rock solid.

The ChemAnalyst’s pricing team’s latest take suggests that the prices are anticipated to remain stable in the coming weeks, held up by a solid supply flow, steady usage, and EVs taking off worldwide. According to the market participants, Europe’s lithium carbonate market could show substantial stable pricing dynamics through the second half of 2025.