Lithium prices hit RMB 200,000/MT; cell prices rise while system prices hold steady

*Starting in May 2026, InfoLink ESS spot price commentary will be published every Wednesday in Chinese and every Thursday in English.

Lithium ore and lithium salt

Prices for spodumene concentrate and battery-grade lithium carbonate have risen sharply in tandem, with the overall market price level moving significantly higher than earlier levels. Based on the latest data, prices over the past week are as follows:

• Battery-grade lithium carbonate (spot)

Price range: RMB 190,000–200,000/MT

Average price: RMB 195,000/MT

Up 12.7% WoW

• Spodumene concentrate (SC6, CIF)

Price range: USD 2,750-2,850/MT

Average price: USD 2,800/MT

Up 12.4% WoW

Overall, the pace of gains in lithium salt and lithium ore prices has accelerated markedly over the past week. Quoted prices from the mining and lithium salt segments have formed a mutually reinforcing feedback loop, pushing both transaction levels and market expectations significantly higher.

On the supply side, China’s lithium carbonate output remains in a ramp-up cycle in May, with most leading smelters maintaining high operating rates and overall supply activity staying elevated. Outside China, Chile’s combined exports of lithium carbonate and lithium hydroxide reached 30,600 MT in April, largely flat MoM and up 25% YoY, with exports to China totaling 23,000 MT, up 21% MoM and 48% YoY. In addition, Chile exported 12,100 MT of lithium sulfate to China in April, or roughly 6,000 MT of lithium carbonate equivalent (LCE), down 27% MoM but up 34% YoY.

While non-China lithium salt supply has climbed further, disruptions on the lithium ore side have yet to materially ease. Although Zimbabwean lithium ore has entered the stage of export resumption, actual shipment efficiency remains below market expectations, with port arrivals lagging notably. Meanwhile, license renewals at lepidolite mines in Jiangxi, China, have progressed slowly, while rising shipping and fuel costs outside China are also constraining short-term supply flexibility on the ore side.

Overall, lithium ore supply remains relatively tight. Most April-May seaborne cargoes have already been locked in, leaving limited room for spot replenishment, while inventory drawdown on the ore side continues. On the lithium salt side, downstream restocking and slower-than-expected lithium ore arrivals have also kept inventories in a short-term drawdown trend. As a result, supply-side pressure on prices has yet to become clearly visible.

On the demand side, production schedules for cathode materials and cells are expected to continue rising in May. Leading manufacturers have sufficient orders, utilization rates remain high, and midstream production activity is still elevated.

By segment, energy storage remains the clearest source of support for lithium salt consumption, with ongoing project deliveries and stocking demand providing sustained pull for lithium carbonate. The power battery segment has also improved from earlier levels, as new energy vehicle (NEV) sales saw a marginal recovery in April, though the strength and sustainability of end-market recovery still need further observation.

Overall, demand realization is currently stronger than the market had previously expected. Resilient midstream production schedules, in particular, have kept activity high and provided strong support for spot prices.

Overall, the lithium carbonate market is still characterized by improving demand, continued disruptions on the lithium ore side, and ongoing inventory drawdowns on the lithium salt side, leaving short-term fundamentals relatively strong. However, market sensitivity to bearish developments has risen notably since lithium prices reached the high level of RMB 200,000/MT; resistance to another rapid price rally has increased. Negative feedback along the industry chain may gradually emerge later this month.

Lithium carbonate prices are expected to remain firm in the near term, but the market is more likely to fluctuate at high levels, with limited room for another sharp upside breakout.

Energy storage cells in China

Quoted prices in China’s LFP cell market have continued to drift higher. According to the latest data, prices for LFP prismatic cells across formats are as follows:

• 100 Ah: RMB 0.425-0.480/Wh, averaging RMB 0.453/Wh, up 0.6% WoW.

• 280 Ah: RMB 0.340-0.410/Wh, averaging RMB 0.375/Wh, up 1.4% WoW.

• 314 Ah: RMB 0.340-0.405/Wh, averaging RMB 0.373/Wh, up 1.4% WoW.

On May 7, CEEC Energy Storage Technology opened bids for its 2026 cell framework procurement, with total procurement reaching 7 GWh. Lot 1, totaling 5 GWh, requires cell capacity of at least 314 Ah. Shortlisted suppliers include Shoto Group, Youngy Energy, Desay Battery, CALB, and EVE Power, with equivalent awarded unit prices of RMB 0.345/Wh, RMB 0.340/Wh, RMB 0.365/Wh, RMB 0.365/Wh, and RMB 0.394/Wh, respectively. Lot 2, totaling 2 GWh, requires cell capacity of at least 500 Ah. Shortlisted suppliers include EVE Power, CALB, and Pengcheng Infinite, with equivalent awarded unit prices of RMB 0.383/Wh, RMB 0.375/Wh, and RMB 0.360/Wh, respectively.

It is worth noting that prices submitted in this tender round largely reflect cost levels when lithium carbonate was trading at RMB 150,000–170,000/MT. As lithium carbonate has now climbed to around RMB 200,000/MT, actual cell transaction and fulfillment prices are likely to rise further if subsequent production and delivery are based on current raw material costs.

Energy storage system (ESS) in China

Prices for electrochemical ESS in China have remained stable overall. Based on the latest data, prices are as follows:

• DC-side liquid-cooled containerized ESS (2h): RMB 0.45-0.53/Wh, averaging RMB 0.49/Wh, unchanged WoW.

• AC-side liquid-cooled containerized ESS (1h): RMB 0.81-0.87/Wh, averaging RMB 0.84/Wh, unchanged WoW.

• AC-side liquid-cooled containerized ESS (2h): RMB 0.51-0.64/Wh, averaging RMB 0.58/Wh, unchanged WoW.

• AC-side liquid-cooled containerized ESS (4h): RMB 0.49-0.55/Wh, averaging RMB 0.52/Wh, unchanged WoW.

Judging from recent project progress, standalone ESS buildout demand continues to grow. On May 9, Xilingol League published the list of implementing companies for the autonomous region’s third batch of standalone new energy storage power station projects for 2026–2027. Datang’s Sonid Right Banner 500 MW/2,000 MWh standalone ESS station project was selected. With this, Xilingol League has completed the announcement of implementing companies for three batches of projects, covering five projects with a combined scale of 1.7 GW/6.8 GWh.

Considering the 2.9 GW/11.6 GWh standalone ESS implementation list released locally in late January and the phased advancement since March, standalone ESS projects in Inner Mongolia are accelerating their transition from planned project lists to confirmed implementing entities and substantive construction.

This indicates that the current utility-scale storage market has not fallen into a purely price-driven bidding game. Project pipelines remain sufficient, and developers show a strong willingness to move ahead, with standalone ESS remaining a core source of support for China’s ESS demand.

Market discussion around the possible resumption of consumption tax collection on lithium batteries has continued to heat up recently. However, as of now, lithium-ion batteries remain exempt from consumption tax under the current policy framework, with Cai Shui [2015] No. 16 serving as the current policy basis. No official adjustment notice has been released yet.

Should the policy be adjusted later, a 2%–4% tax rate would translate into a direct cost increase of approximately RMB 0.007–0.015/Wh, based on current LFP cell prices of RMB 0.36/Wh. This would represent only a marginal per-Wh impact, with limited direct pressure on end demand. The potential impact is more likely to be reflected in price negotiations and profit allocation across the industry chain.

For the energy storage value chain, expectations of a resumption in consumption tax collection may strengthen the price hike rationale for cells and systems in the near term, while also helping narrow the room for excessive low-price competition. In the long run, as the industry gradually exits the phase of special policy support, a pricing system that returns to normal tax burdens and reasonable profit margins could instead support the energy storage industry chain in moving toward a more sustainable development path.