Lithium salt prices continue to pull back; energy storage cell and system prices hold steady

Lithium ore and lithium salt

Over the past week, prices for spodumene concentrate and battery-grade lithium carbonate have continued to fluctuate downward.

• Battery-grade lithium carbonate (spot)
  Price range: RMB 160,000–170,000/MT
  Average price: RMB 165,000/MT
  Down 4.3% WoW
• Spodumene concentrate (SC6, CIF)
  Price range: USD 2,350–2,450/MT
  Average price: USD 2,400/MT
  Down 4.0% WoW

The current price pullback is still a correction after the previous rapid rally. Market trading logic is moving beyond a singular focus on tight mine-side supply and gradually turning to a broader assessment of actual inventories, the pace of future production resumptions, and downstream procurement appetite. In the short term, prices are likely to remain rangebound.

On the supply side, the tightest phase at the mining end has eased, while disruptions to lithium salt supply have not been fully resolved. For the Jianxiawo mine, recent adjustments to land pre-examination and site selection documents, together with the pending disclosure of the second environmental impact assessment and unresolved tailings pond issues, suggest that a Q3 production resumption remains highly challenging, with the actual recovery timeline likely to be pushed back further. Other mines in Jiangxi have gradually suspended production for license renewals, though previously accumulated ore inventories can still support lithium salt production in the short term.

Outside China, lithium shipments from Zimbabwe are recovering, but a lag remains between shipment and concentrated arrivals at port. As restart plans for Australian mining projects become clearer, longer-term mine-side supply expectations have improved.

On the demand side, midstream production schedules remain relatively high, new LFP cathode capacity continues to ramp up, and energy storage demand continues to grow. In the EV battery segment, improved exports and expectations for the traditional Q3 peak season are also supporting a recovery in cell production schedules.

Overall, improving mine-side expectations are capping price upside, while demand has not weakened significantly. Both supply and demand are still in a rebalancing phase.

Overall, the lithium carbonate market is currently characterized by growth on both the supply and demand sides, with bullish and bearish factors intertwined. On the one hand, futures warehouse warrants remain elevated, some lithium resources from Zimbabwe are being shipped gradually, and expectations for Australian mine restarts are rising, prompting a correction in the market’s previous tight-pricing assumptions around actual supply and inventory levels. On the other hand, the Jianxiawo production resumption has not progressed smoothly, while midstream production schedules remain relatively high. If demand materializes well going forward, lithium salt supply could tighten again.

At the macro level, geopolitical disruptions and weaker performance in risk assets have also kept capital sentiment relatively cautious. In the short term, prices above RMB 180,000/MT still exert notable cost pressure on downstream buyers, while levels around RMB 150,000/MT offer some procurement support. Battery-grade lithium carbonate spot prices are therefore expected to fluctuate within the range of RMB 150,000–180,000/MT.

Energy storage cells in China

Over the past week, transaction prices for China’s LFP energy storage cells held steady overall, with quotes for major formats showing no significant changes. Prices are as follows:

• 100 Ah: RMB 0.425–0.485/Wh, averaging RMB 0.455/Wh (flat)

• 280 Ah: RMB 0.345–0.410/Wh, averaging RMB 0.378/Wh (flat)

• 314 Ah: RMB 0.345–0.405/Wh, averaging RMB 0.375/Wh (flat)

By format, the price levels for 100 Ah cells have remained relatively firm, supported by residential storage demand, while short-term quotes for 280 Ah and 314 Ah cells have largely held steady amid a relatively sufficient supply base.

Market sources recently indicate that demand for residential and C&I ESS has remained strong after SNEC exhibition. Residential storage restocking in non-China channels and the recovery of the European markets continue to support demand for 100 Ah and smaller formats. Production-line expansion for small-capacity cells has proceeded more cautiously than for large-capacity energy storage cells, with some manufacturers remaining on the sidelines as they weigh order stability, production-line switching efficiency, and investment payback periods, leaving limited short-term supply flexibility. Meanwhile, after the recent pullback in lithium carbonate prices, downstream customers have also become more cautious in their procurement pace, with some buyers preferring to wait for greater clarity on raw material prices before locking in orders.

Overall, Tier-1 manufacturers are showing stronger quote support for small-capacity cells, while Tier-2,3 manufacturers continue to maintain previous price levels. In the short term, the energy storage cell market is expected to remain structurally divided, with prices for 100 Ah and smaller formats showing greater resilience than those of 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:

• DC-side liquid-cooled containerized ESS (2h): RMB 0.46–0.53/Wh, averaging RMB 0.50/Wh (flat)

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

• AC-side liquid-cooled containerized ESS (2h): RMB 0.52-0.64/Wh, averaging RMB 0.58/Wh (flat)

• AC-side liquid-cooled containerized ESS (4h): RMB 0.50-0.55/Wh, averaging RMB 0.53/Wh (flat)

System-level prices have seen limited fluctuation, with the recent short-term cost pullback not yet clearly reflected in system quotes. Project owners continue to push for lower prices, while integrators seek to restore margins, leaving the market in a standoff.

Recent project tender activity shows that quotes for utility-scale standalone storage projects remain concentrated within the current mainstream range. On June 8, the preferred bidder shortlist was announced for the ESS equipment procurement tender for Hebei Transportation Investment Group’s 400 MW/1,600 MWh grid-forming standalone energy storage station project in Kangbao County. CATL, Sungrow, and Envision ranked among the top three bidders, with equivalent unit prices of around RMB 0.545–0.548/Wh.

The project adopts an LFP grid-forming ESS, with a relatively large project scale, covering core equipment and services including battery prefabricated cabins, BMS, fire protection, thermal management, grid-forming PCS, box-type transformers, and EMS. Bid opening records show that many companies participated, with unit-price quotes ranging from around RMB 0.516/Wh to RMB 0.558/Wh.

The results indicate that grid-forming and utility-scale standalone storage projects place higher requirements on system integration capabilities, grid-friendly performance, and delivery assurance. This leaves limited room for the low end of the price range to move further down, with mainstream suppliers continuing to compete around RMB 0.55/Wh.

On June 5, CEEC launched its 2026 centralized procurement for LFP ESS, with an estimated total procurement scale of 30 GWh, covering four packages: 1C, 0.5C, and 0.25C ESS, as well as LFP cells. For the 2-hour and 4-hour system packages, bidders are required to have experience in individual projects of 100 MWh or above over the past two years, with cumulative contracted references of no less than 1,000 MWh. For the cell package, individual energy storage cells must have a capacity of at least 314 Ah, and bidders must have corresponding supply experience for large-scale projects.

Such large-scale framework procurements by central state-owned enterprises (SOEs) continue to raise the qualification bar for project experience, delivery scale, and product maturity. This means competition in the ESS market has shifted from pure price competition toward competition over scaled supply capabilities, project execution capabilities, and product reliability. In the short term, system prices are expected to remain broadly stable, with large-scale centralized procurement and grid-forming projects providing some support for the price floor.