SunSirs: Lithium Carbonate Prices Surged 20% in 5 Days! Driven by both Supply and Demand, Lithium Carbonate Experienced a Strong Rebound After the Spring Festival

Following the Spring Festival in 2026, the lithium carbonate market experienced a strong rebound. According to data from SunSirs' stock trading platform, the price of battery-grade lithium carbonate rose by nearly 20% in just five days. This also spurred a collective surge in the A-share lithium mining sector. On February 27, Yongxing Materials hit its daily limit, while Tibet Mineral Development, Yongshan Lithium, and Weiling Shares all rose by more than 3%. Leading stocks such as Ganfeng Lithium, Tianqi Lithium, and Shengxin Lithium Energy also strengthened.

Driven by multiple positive factors, the industry's prosperity continued to recover, with supply-side disruptions being the core driver of price increases. On the one hand, domestic lithium salt companies underwent concentrated maintenance during the Spring Festival, keeping the industry's operating rate low; on the other hand, on February 25, Zimbabwe's Ministry of Mines announced a suspension of all lithium ore and concentrate exports. As China's second-largest importer of lithium ore, this tightening of supply exacerbated market concerns. Meanwhile, the industry continued its rapid destocking trend, with domestic lithium carbonate inventory temporarily falling to around 103,000 tons.

The fundamentals were also strong. New energy vehicles maintained essential demand, with production and sales growth exceeding 28% in 2025, accounting for 65% of lithium demand. Energy storage demand was experiencing explosive growth, and the US's elimination of some tariffs has reduced export costs for energy storage. Furthermore, the upcoming reduction in domestic lithium battery export tax rebates—from 9% to 6% from April 1st to December 31st, 2026, and eliminated from January 1st, 2027—has driven "rush exports," leading to higher-than-expected production in the first quarter and stimulating some temporary restocking and inventory buildup demand.

Analysts at SunSirs believe that the short-term supply contraction pattern is unlikely to change, and downstream restocking demand will continue to be released, so lithium carbonate prices are expected to remain strong. In the medium to long term, the global energy transition is accelerating, and demand for new energy vehicles and energy storage continues to grow, while new lithium mine capacity is limited. The industry's supply and demand pattern will continue to optimize, and prices are expected to rise steadily, with a recovery in the performance of lithium mining companies anticipated.

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