USA’s lithium hydroxide prices hold stability in March 2025 and the analysts keeping an eye on market developments point to two main reasons for this stability. First, electric vehicles are rising in key economies. This has given a lift to lithium hydroxide, an important material that powers electric vehicle batteries, helping things level off. Second, the big names in the market are focusing on strategizing production plans of lithium hydroxide.

On a broader level, the demand for lithium hydroxide remains sluggish owing to factors like oversupply, the opening of new mines, and consumers’ unwillingness for newer purchases. Recent data revealed that Chile’s lithium production for January 2025 rose by 22% month on month, filling the market with additional supplies.

New mines in Mali, Bougouni, and Goulamina are expected to boost lithium output by 40,528 metric tons of lithium carbonate equivalent (LCE), about 2.7% of the global market. Moreover, Ganfeng Lithium Group, Argentina’s leading lithium producer has resumed production at the Mariana brine project which is adding another 17420 metric tons of LCE annually.

Though lithium hydroxide prices continue to hold stability with marginal fluctuation here and there, the purchase of electric vehicles is persistent in the USA. Still, the market share of electric vehicles is a fraction of the overall vehicles on the road. Sustained EV sales showcase that for most consumers, range anxiety is no longer a concern. But consumers constantly fear new regulations due to Trump’s anticipated slash of EV incentives from the federal government.

In recent weeks, the North American supply chain has encountered challenges due to uncertainty regarding the US Inflation Reduction Act (2022) that gave tax credits to Canada and other trade partners. Now under the Trump Administration, policies are being reconsidered, and if a 10% tariff on energy exports from Canada is enacted, these would make lithium kore costlier, constraining further investments in the energy sector.

At present, the demand for lithium is fulfilled by the USA’s domestic production which comes to around 44.7%, and 31.7% of the total supply comes from Canada. Any change in rules and regulations could significantly impact lithium hydroxide prices.

Looking ahead, the outlook for 2025 remains uncertain though, most market participants remain optimistic for the lithium hydroxide market. The rebound in the lithium hydroxide market seems far as global surplus and rising production will likely weigh on the prices in the near future. With market leaders seeking to capitalize on foreseen lithium demand, notable shifts driven by infrastructure projects and rising green technology. Furthermore, growth in electric vehicle adoption and renewable energy storage solutions could ignite positive lithium hydroxide trends.