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| Author | InfoLink |
| Updated | June 03, 2026 |
Lithium ore and lithium salt
Over the past week, prices for spodumene concentrate and battery-grade lithium carbonate have continued to fluctuate.
- Battery-grade lithium carbonate (spot)
Price range: RMB 170,000–175,000/MT
Average price: RMB 173,000/MT
Down 1.4% WoW - Spodumene concentrate (SC6, CIF)
Price range: USD 2,450–2,550/MT
Average price: USD 2,500/MT
Down 2.0% WoW
After a rapid uptrend, lithium carbonate prices have entered a consolidation phase at elevated levels. The market is now largely fluctuating, driven mainly by adjustments to supply expectations, the pace of inventory release, and downstream buyers’ purchasing capacity.
From the supply side, the tightest phase for lithium resources may have gradually passed, though actual near-term supply additions remain uneven.
Jianxiawo mine: the concentrator restart timeline remained unclear as of late May. With the second environmental impact assessment yet to be disclosed and tailings storage issues still unresolved, a June–July restart remains highly uncertain, with actual resumption likely delayed until Q3 or later.
Zimbabwean lithium mines: small-volume shipments resumed in mid-May but have remained well below pre-ban levels. Shipment volumes are expected to improve gradually in June, with concentrated arrivals starting in July.
Bald Hill, Ngungaju, and Finniss have all announced restart plans and are expected to progressively enter stable production in 3Q26-4Q26. At Sigma Lithium’s Phase 1 project in Brazil, mining-end capacity for lithium concentrate has fully recovered.
On the demand side, midstream production schedules remain elevated, with June output for LFP cathode materials and cells expected to rise further MoM. Energy storage cell demand continues to grow, while EV battery cell demand has room for further recovery, supported by improving exports and expectations for the Q3 peak season. Overall, expectations of longer-term supply improvement have weakened price support from tight lithium ore supply, but midstream production remains high, and demand has yet to show a clear decline, leaving both supply and demand in a phase of marginal adjustment.
Overall, the lithium carbonate market has shifted from a single supply-tightness narrative at the mining end to a broader assessment of simultaneous supply and demand growth in Q3. Gradual arrivals from Zimbabwe, restarts at Australian mines, and inflows of hidden inventory have eased expectations of a tight lithium ore supply. Midstream production schedules remain elevated, with demand from energy storage and EV battery cells holding firm. However, prices above RMB 180,000/MT still create cost pressure for downstream buyers, limiting acceptance of further price pass-through. In the short term, improving supply expectations will cap upside momentum, while elevated midstream production will provide downside support. Lithium carbonate prices are therefore expected to fluctuate at elevated levels.
Energy storage cells in China
Quoted prices in China’s LFP cell market have been diverse in the past week. Prices for LFP prismatic cells across formats are as follows:
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100 Ah: RMB 0.425–0.485/Wh, averaging RMB 0.455/Wh (up 0.6% WoW)
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280 Ah: RMB 0.345–0.410/Wh, averaging RMB 0.378/Wh (flat)
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314 Ah: RMB 0.345–0.405/Wh, averaging RMB 0.375/Wh (flat)
For the 100 Ah format, some manufacturers have recently raised prices, reflecting sustained strong demand from the residential energy storage segment.
According to InfoLink Consulting, global residential ESS shipments reached around 20.7 GWh in 1Q26, up over 390% YoY and about 138% QoQ, indicating a clear demand ramp-up. Residential ESS shipments are expected to remain elevated in the coming quarters, supported by continued strength in Australia and a recovery in Europe, which should sustain demand for small-capacity battery cells.
Meanwhile, cell manufacturers remain cautious in expanding capacity for 100Ah and smaller formats, constrained by line adjustment costs, equipment payback periods, and order volatility. As a result, near-term supply flexibility remains limited. Overall, rising residential storage demand is tightening supply-demand conditions for 100 Ah and smaller cells, potentially giving these formats greater price elasticity than medium- and large-capacity products.
Energy storage system (ESS) in China
Prices for electrochemical ESS in China have remained stable for the past week. Prices are as follows:
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DC-side liquid-cooled containerized ESS (2h): RMB 0.46–0.53/Wh, averaging RMB 0.50/Wh (flat)
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AC-side liquid-cooled containerized ESS (1h): RMB 0.81-0.87/Wh, averaging RMB 0.84/Wh (flat)
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AC-side liquid-cooled containerized ESS (2h): RMB 0.52-0.64/Wh, averaging RMB 0.58/Wh (flat)
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AC-side liquid-cooled containerized ESS (4h): RMB 0.50-0.55/Wh, averaging RMB 0.53/Wh (flat)
On May 31, China Huaneng Group announced the winning bidders for its 2026 ESS framework procurement, with a total scale of 4 GWh. After removing duplicate winners across the three bid sections, seven companies were selected: Sungrow, CRRC Zhuzhou Institute, HyperStrong, EVE Power, NR Electric, Hithium, and Huaneng Clean Energy Research Institute (CERI).
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Bid section 1: Centralized-control electrochemical ESS (cell capacity: ≥ 314 Ah, < 450 Ah); procurement scale of 2 GWh; winning bids ranging from RMB 0.5317-0.6017/Wh.
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Bid section 2: Centralized-control electrochemical ESS (cell capacity: ≥ 450 Ah, < 700 Ah); procurement scale of 1 GWh; winning bids ranging from RMB 0.5132–0.5546/Wh.
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Bid section 3: Distributed modular and string-type electrochemical ESS, totaling 1 GWh. CERI and EVE Power won with bids of RMB 0.565/Wh and RMB 0.5801/Wh, respectively.
Overall, prices under large framework procurement tenders remain within the current mainstream transaction range, with limited room for further declines. However, project owners remain cautious about accepting higher system quotes, and near-term system prices are expected to stay stable with slight adjustments.
On May 22, the Xinjiang Development and Reform Commission issued a notice on improving the region’s generation-side capacity tariff mechanism. The notice specifies that standalone energy storage projects may receive capacity compensation based on available capacity, at RMB 165/kW-year, effective June 1, 2026.
Compared with relying solely on peak-valley spreads or ancillary service revenues, an improved capacity compensation mechanism can enhance cash flow visibility for independent energy storage projects and provide clearer revenue support for utility-scale, long-duration storage projects.
For system providers, improved project revenue mechanisms will not directly lift near-term equipment prices but will increase project owners’ focus on system reliability, available capacity, and long-term O&M performance. Tender evaluations are therefore expected to gradually shift from upfront capex alone to lifecycle returns and availability requirements. Overall, ESS prices should remain stable in the near term, while project execution and equipment procurement may become more predictable in regions with clearly defined revenue streams.