China’s lithium carbonate futures prices slid to a nearly 10-month low on Monday, as a deal with the European Union to cut hybrid cars exports exacerbated concerns over demand prospects for the electric vehicle battery material.
The most active lithium carbonate contract on the Guangzhou Futures Exchange touched its weakest since December 17, 2025 at 104,680 yuan ($15,640.22) per metric ton.
The contract recouped some losses and ended daytime trade down 11.8% to 104,740 yuan, marking its steepest daily fall since March.
China and the European Union have reached a deal that could cut Chinese exports of hybrid cars to the bloc by more than half, European Trade Commissioner Maros Sefcovic said on Friday after talks in Beijing aimed at reducing the EU’s trade deficit with China.
“Market participants have been doubtful about lithium demand outlook…while the deal is better than earlier pessimistic expectations that the EU would hike tariffs, it means China’s export growth to the EU will slow down afterwards,” analysts at Orient Securities said in a note on Sunday.
Lithium prices have been on the downward trajectory, down a half from a 33-month high at 209,880 yuan hit on May 13 as worry on demand outlook in 2027 mounted.
Additionally, intermittent market speculation over a potential restart of CATL’s (SZSE: 300750) flagship Jianxiawo mine has driven investor sentiment.
Shares at major producers Tianqi Lithium (SZSE: 002466) and Ganfeng Lithium (SZSE: 002460) fell by 5.1% and 3.9%, respectively.
($1 = 6.6930 Chinese yuan)
(Reporting by Amy Lv and Lewis Jackson, Editing by Louise Heavens)
