Lithium prices expected to fluctuate due to oversupply

Jiangsu Lopal Tech Co., a Chinese company that produces battery materials, has warned that the lithium market may experience price swings in the near future. This is because supply is growing faster than demand. The company's chairman, Shi Junfeng, said lithium prices could fluctuate between 65,000 yuan and 85,000 yuan per ton in the short term. Lopal has partnered with Contemporary Amperex Technology Co. Ltd. to operate a lithium refinery in Jiangxi, China. Despite lower prices, production at this facility has resumed. The lithium market has seen significant fluctuations in recent years, reflecting the challenges in the transition to greener technology. Increased global mining capacity is also affecting the market. Currently, lithium is priced around 73,000 yuan per ton in China, which is a significant drop from nearly 600,000 yuan less than three years ago. Shi pointed out that the lithium market is oversupplied, leading to pressure on refiners. He noted that overcapacity and fierce competition are significant issues for the industry. Looking ahead, Shi predicts that prices will stabilize around 100,000 yuan per ton in the medium term. This price point is necessary for the growth of the battery recycling industry, which will help balance the market sustainably. Lopal supplies various companies, including LG Energy Solution and EVE Energy. The firm is also working on expanding its plant in Indonesia, planning to increase its capacity from 30,000 tons to 120,000 tons annually, and is considering a second overseas plant. An announcement about this is expected later this year.