Proliferation between Lithium Carbonate-Lithium Hexafluorophosphate Strains for the third week straight

The Lithium market is persistently observing fluctuations in the market dynamics, as the energy transition goals presented several challenges and opportunities altogether. The major focus was the persistently soaring battery raw material prices, the Lithium raw material quotations observed humongous gains in their benchmark prices after the global leader undertook the paced transition towards a greener economy post COP 26 Glasgow. In response, the various energy giants and conglomerates alongside new players in the market poured their huge investments to capture the larger market share of the EV. That induced competitiveness amongst the players across the globe and strengthened the will of producers to hike the offered quotations for raw materials such as Lithium Carbonate and Lithium Hydroxide. The historical price trend for Lithium Carbonate and Lithium Hydroxide showcased that benchmark prices soared by 442% and 380% on a year-on-year (Y-o-Y) basis.

Whereas, according to the market sources, the consistently soaring offers for the EV battery's raw material pushed the prices of battery cells of EVs by a 20% margin. This indicated that the demand for “green personal mobility” was soaring sharply which can levy a significant impact on price-sensitive markets such as India. Such kind of inflationary pressure was foreseen in all parts of the globe after Russia invaded Ukraine which hindered the ease of quotations. Although, after witnessing such gyrations in the EVs batteries market, the Chinese authorities decided to interfere and review the fundamentals of the bullish sentiments for Lithium. Such scrutiny from the Chinese authorities weakened Lithium Hexafluorophosphate dynamics and the quotations plunged drastically in the domestic market. Despite that, the feedstock Lithium Carbonate persuaded its upward trajectory, which slowed down the spot procurement significantly as the downstream players were constantly monitoring the downfall in the end-use product (i,e. Lithium Hexafluorophosphate) to maximize their netbacks and the resurgence of COVID slowed down the onloading and offloading activities at the ports.

As per ChemAnalyst, the scrutiny of the Chinese authorities over the Lithium players in China to safeguard the fundamentals of sustainable transition towards a greener economy plunged the prices of Lithium Hexafluorophosphate. Whereas the prices for Lithium Carbonate remain in the upward trend which resulted in a narrowed spread margin between Lithium Hexafluorophosphate and Lithium Carbonate globally. Whereas several Chinese market participants stated that the producers with leftover inventories were not in a hurry as it is anticipated that the demand is likely to soar in the near term.