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Demand in China has pushed the price of lithium to double that of last year. Why is this happening?
I think the fundamental reason for the continuous rise of lithium price lies in the mismatch between supply and demand.

We all know that under the general trend of the development of new energy vehicles, the demand for lithium products will also increase, which will drive the price of lithium to rise. However, in the short term, with the release of lithium carbonate production capacity and the rapid development of new energy vehicles, the demand for lithium has been boosted, leading to an increase in prices. ?

Demand in China has pushed the price of lithium up to twice that of last year.

As the main raw material of electric vehicle battery, the price index is rising further. In metal batteries, the price of lithium is obviously rising continuously, and the demand in China has pushed the price of lithium to double that of last year. However, many people believe that even if the output is increased, the reasonable price will continue to rise, because lithium has many uses. In the context of global concerns about slowing economic growth, the price of lithium driven by electric vehicles in China may remain high for a long time.

Rich in lithium resources

Lithium is the most widely distributed and abundant metal element in nature, which has excellent physical and chemical properties, stable chemical properties and good acid and alkali resistance, and can be processed into battery metals and alloys. It has strong electrical and thermal conductivity and can also be used to manufacture lasers. Many battery packs of mobile phones that we are familiar with use lithium zirconium carbonate shells. This material also needs this raw material, right? Lithium carbonate? . In industrial application, lithium carbonate solution and carbonate solution are different. ?

From the historical data, the price of lithium carbonate will be adjusted back in 3-5 years, but the price inflection point will not appear. If the price of lithium carbonate falls to 10- 15%, it is still possible for the price to fall back in the future, especially since it has been running at a low level this year. Once the price continues to be depressed, the production capacity of lithium carbonate will be released, and the supply shortage in the next 1-2 years will support the price. For ordinary investors, the market can be used to judge whether the price has bottomed out and can be reversed.