Recently, a special phenomenon has appeared in the lithium carbonate market: although the price of lithium ore remains firm, the price of battery-grade lithium carbonate has been continuously adjusted downward. The CIF price of lithium pyroxene concentrate is stable at $1,115/ton, while the price of battery-grade lithium carbonate has dropped to RMB 101,500/ton, a downward adjustment of RMB 5,000/ton compared with the previous period. Considering the current exchange rate, this led to a negative corporate profit of -RMB1,536.78/tonne, down a staggering RMB4,970/tonne from the previous period.

This profit inversion is undoubtedly a huge challenge for battery-grade lithium carbonate producers. Against the backdrop of high lithium ore prices, the fall in lithium carbonate prices has made it impossible for companies to get a good coverage of production costs, and profitability has been significantly compressed. In order to cope with this predicament, enterprises may need to adjust their production strategies and optimize cost control, while seeking new market opportunities to ease the current pressure on profits.

Changes in the market are always full of uncertainty, but this also provides an opportunity for enterprises in the industry to transform and upgrade. Only those enterprises that can flexibly respond to market changes and continue to innovate and forge ahead will be able to stand out in the fierce competition and achieve sustainable development.