Lithium Fluoride Prices Decline Amid Weak Demand, While EV Sales Soar in the USA and Europe

Texas, USA: The Lithium Fluoride market in the USA has demonstrated a slowdown in recent weeks, and the prices are tumbling week-on-week due to poor consumer demand. The downstream procurement in the Energy Storage System (ESS) and lithium-ion battery manufacturing industries has remained weak, as the consumer market has shown reluctance to make new purchases of Lithium Fluoride in the face of declining product costs.

According to a few market participants, there was a possibility that the consumers were very well-stocked, were mainly relying on long-term Lithium Fluoride orders, and were refraining from entering the market in the present situation.

In the last few weeks, amid the weak Lithium Fluoride market, the prices of downstream Lithium Hexafluorophosphate have also suffered as the production costs have continuously declined.

Spot Lithium Fluoride prices have continued to fall in Europe and the United States over the last week, owing to a normal slowdown in spot demand at the peak of the summer season, according to sources. However, the Lithium Fluoride prices were presumed to rebound post the peak summer season in the US, where the demand remains seasonally low. However, the demand declined further as the Lithium Fluoride prices did not recover.

The EU is rushing because it realized too late that it is overly reliant on China for a slew of critical raw materials, including Lithium Fluoride, which is now prioritized in a new industrial strategy designed to protect the economy while also meeting the ambitious goal of reducing net greenhouse gas emissions by at least 55% by 2030.

On the contrary side, EV sales in the United States and Europe are increasing, backed by the availability of more models than ever before. Households across the United States are switching from gasoline to electricity, resulting in considerable savings on refueling expenditures. Electric car sales in the United States established a record this quarter and are on course to surpass one million in 2023, which would be a historic milestone for the industry.

According to the European Automobile Manufacturers Association (ACEA), roughly one out of every five new cars sold in the European Union in August were electric, with zero-emission variants more than tripling in sales.

As per the ChemAnalyst database, the Lithium Fluoride market in the USA and Germany is anticipated to observe a stable trend in the last quarter of 2023 as slight improvement in the demand outlook is foreseen. However, in the latter half of this quarter, the prices could decrease as the demand usually slows down amid the Christmas and New Year holidays.