Recently, lithium carbonate futures prices continued to fall, September 6, the main contract closing price hit a record low of 71,200 yuan / ton, down more than 30% during the year. Although new energy vehicle sales growth led to lithium battery demand, but the situation of oversupply has not changed, resulting in lithium carbonate prices under pressure. Industry analysis, the current supply and demand for lithium carbonate is improving, the domestic production decline, and the “Golden Nine Silver Ten” consumption season is expected to support demand. However, lithium prices have been close to the cost line of some mining enterprises, profitability pressure. To cope with market fluctuations, mining enterprises to take a variety of measures, including the suspension of high-cost mining, optimization of mining processes, increase cost control, and actively use hedging tools. For example, Zijin Mining indicated that it would be difficult to fulfill its annual production guidelines at the current price level. Yahua Group, on the other hand, plans to carry out hedging business to reduce the risk of price fluctuations. Yongxing Materials, on the other hand, achieved a year-on-year cost reduction of more than 10% in lithium carbonate per ton in the first half of the year through technological breakthroughs and optimized procurement methods. In the supply and demand relationship and market expectations, lithium carbonate prices may continue to oscillate in the short term, and mining enterprises hedging strategy and cost control will become the key to protect profitability.