Lithium salt prices fluctuate higher, while 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 fluctuated with a slight rebound.

• Battery-grade lithium carbonate (spot)
  Price range: RMB 163,000–173,000/MT
  Average price: RMB 168,000/MT
  Up 1.8% WoW
• Spodumene concentrate (SC6, CIF)
  Price range: USD 2,400–2,490/MT
  Average price: USD 2,445/MT
  Up 1.9% WoW

After the earlier correction, the market did not extend its unilateral downtrend. Trading focus has shifted back to the rebalancing among near-term supply disruptions, pace of inventory drawdown, and midstream procurement strength. In the short term, lithium prices have rebounded from earlier lows but are likely to remain rangebound.

From the supply side, tightness at the mining end has eased compared with earlier levels, while disruptions at the lithium salt end persist. Although market rumors have resurfaced regarding the resumption of operations at the Jianxiawo mine and CATL-affiliated lithium salt plants, approval procedures, environmental impact assessments, and tailings facility requirements suggest that a Q3 restart remains challenging. Actual resumption is more likely to be delayed until Q4. Some other mines in Jiangxi have also suspended production for license renewal. However, as producers had built up ore inventories earlier, short-term lithium salt production has not been materially affected.

Outside China, spodumene shipments from Australia have improved marginally, while shipments from Zimbabwe are also recovering, suggesting mine-supply tightness in May–June is gradually easing. On the lithium salt side, Qinghai salt lake output has edged lower due to equipment upgrades, while Chilean exports declined MoM, which may drive further inventory drawdown in June.

On the demand side, midstream production remains elevated. New LFP capacity continues to ramp up, while power battery production is gaining momentum, supported by improving exports and peak-season expectations for Q3. Energy storage demand remains strong, leaving room for midstream production scheduling to rise further MoM in July.

Overall, the lithium carbonate market remains caught between bullish and bearish factors. Elevated futures orders, high inventories, and recovering supply from Zimbabwe and Australia continue to cap rapid price gains. However, slower-than-expected resumption at Jianxiawo, temporary lithium salt production cuts, and strong midstream production provide some downside support.

At the macro level, geopolitical disruptions and risk-asset volatility have kept market sentiment cautious. Downstream material producers continue to procure mainly on a need-based basis through small orders, with limited willingness to chase higher prices. In the short term, battery-grade lithium carbonate prices are expected to remain rangebound at RMB 150,000–180,000/MT, with salt-side inventory changes and Q3 demand realization as key factors to watch.

Energy storage cells in China

Over the past week, transaction prices for China’s LFP energy storage cells have 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, 100 Ah cells remain more resilient, supported by demand from residential energy storage and some C&I applications outside China. For 280 Ah and 314Ah cells, ample supply continues to keep transaction prices stable.

Recent transactions indicate narrower lithium carbonate price volatility and more cautious cell price adjustments. Some manufacturers continue to offer lower prices in project bidding and order execution to secure annual shipment targets, keeping competition intense for mid- to large-capacity cells. On the other hand, leading suppliers remain firm on prices for relatively tight small-capacity products, limiting low-price volume expansion and helping stabilize the price floor.

In terms of product mix, 314 Ah remains the mainstream format for utility-scale storage tenders and project delivery, while 500+ Ah products are accelerating adoption but have yet to fully replace existing formats. Overall, energy storage cell prices lack a clear basis for broad-based increases in the short term and are expected to remain stable. Structural divergence will persist, with small-capacity products showing stronger price resilience and large-capacity products facing more intense competition.

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)

ESS prices remain largely insensitive to short-term raw material fluctuations. With project owners maintaining strict cost controls and integrators seeking margin recovery, transaction prices have stayed broadly stable.

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 were shortlisted. Bid opening records show that 20 companies participated, with quotes ranging from RMB 0.5160–0.5578/Wh. Leading suppliers generally quoted around RMB 0.55/Wh.

The project adopts an LFP grid-forming ESS, with delivery scheduled to begin by end-August 2026 and full equipment supply to be completed by early October. This places higher requirements on suppliers’ grid-support capability, system integration, and delivery execution. Compared with standard grid-following ESS, grid-forming solutions typically carry higher prices due to stricter requirements for PCS control, grid-support performance, and system commissioning. Competition remains intense for utility-scale grid-forming projects, but further price declines appear limited, with mainstream prices expected to stay within the current range.

Beyond fixed utility-scale storage projects, mobile energy storage power services are showing clearer signs of scaled procurement. On June 2, China National Petroleum Corporation (CNPC) announced the shortlisted candidates for its 2026–2028 mobile energy storage power service project. The tender covers eight packages, totaling 76 systems and approximately 982 MWh, with estimated three-year service volume of 519 million kWh. The bid ceiling ranges from RMB 1.45–1.60/kWh, averaging RMB 1.535/kWh, with a tax-inclusive contract value of around RMB 901 million.

Unlike standard ESS equipment procurement, this project is priced as an integrated service fee for storage capacity deployment and continuous power supply, covering equipment installation, O&M, and scenario-specific adaptation. Targeting distributed, high-load energy-consuming sites such as oilfields, the project places higher requirements on mobile deployment, operational reliability, and service response.

Although this type of demand is not directly comparable to mainstream utility-scale ESS equipment pricing, it indicates that ESS is extending from fixed power station procurement into industrial energy services. System integrators’ competitive focus is therefore expanding beyond equipment cost control to scenario-specific solutions and full-lifecycle service capabilities.