European Lithium Carbonate Prices Stabilize in June 2024 Amid Balanced Market Dynamics

Antwerp (Belgium): The European Lithium Carbonate market prices have stopped tumbling and stabilized somewhat in June 2024. In the second half of June, Lithium Carbonate prices decreased marginally in Belgium due to imports of cheaper goods into the domestic market. Over the past two to three weeks, sources noted weakness in the Lithium Carbonate market, attributed to sluggish activity in the spot market.

Industry experts report that the Lithium Carbonate market is currently calm. The bearish sentiment from Asia has also contributed to the decline in Lithium Carbonate prices, despite slightly higher freight costs from Asia to Europe, according to market participants. Downstream demand for Lithium Carbonate from the domestic automotive sector has remained steady at a moderate level, with ample material available locally. However, consumer inquiries for Lithium Carbonate have been sluggish, and new purchase orders have continued to decline. Overall, the Lithium Carbonate market has been quiet, with minimal activity observed in the region.

For the week ending on June 28th, Lithium Carbonate Battery Grade DDP Antwerp was assessed at USD 14,200/MT.

In contrast, sales of new battery-electric cars in the European Union dropped by 12% in May compared to the previous year, with Germany experiencing a 30% decline, according to data from Europe's auto industry body. In December, Germany, the largest electric vehicle market in the EU, discontinued subsidies for purchasing EVs as part of an eleventh-hour 2024 budget agreement. This has led to a year-to-date decline of 16% in EV sales, as reported by the European Automobile Manufacturers Association (ACEA).

Demand for EVs in Europe has cooled recently after years of strong growth, while competition to produce more affordable models has intensified. To protect domestic automakers from an influx of inexpensive EV imports, the European Commission announced provisional duties of up to 38.1% on China-made EVs starting in July. U.S. electric carmaker Tesla has announced plans to raise the price of its China-made EVs once the EU measures take effect.

The current stagnation in the EV market has been anticipated for years, but sales are expected to rebound in 2025 when new EU car emission targets take effect. Electrified vehicles, including fully electric models, plug-in hybrids, and full hybrids, accounted for a larger portion of new EU passenger car registrations in May compared to the previous year. While the market share of fully electric cars saw a slight decline, the share of hybrids increased.

According to the ChemAnalyst database, Lithium Carbonate prices are anticipated to remain stable in the upcoming weeks, supported by improved consumer demand and better consumer sentiments.