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| Author | InfoLink |
| Updated | July 22, 2026 |
Lithium ore and lithium salt
Over the past week, prices for spodumene concentrate and battery-grade lithium carbonate have declined significantly.
- Battery-grade lithium carbonate (spot)
Price range: RMB 139,000–143,000/MT
Average price: RMB 141,000/MT
Down 7.2% WoW - Spodumene concentrate (SC6, CIF)
Price range: USD 2,000–2,100/MT
Average price: USD 2,050/MT
Down 6.8% WoW
This round of price declines has been driven primarily by expectations for incremental supply and a repricing of the longer-term demand outlook. The Jianxiawo lithium mine has resumed production, with market focus shifted to its ramp-up pace and actual supply. Some leading companies remain cautious on demand growth, and expectations of a looser medium- to long-term supply-demand balance are putting near-term pressure on lithium salt prices. However, as lithium carbonate prices have fallen back to around RMB 140,000/MT, downstream point-based pricing and phased inventory building have increased, indicating that transactional uptake remains somewhat supportive at lower price levels.
On the mining side, the restart of the Jianxiawo mine will weigh on prices in Q3. The market generally assumes that output will gradually stabilize from August onward. However, other mines in Jiangxi remain suspended pending license renewals or are still progressing toward production resumption. Regional supply recovery has not been entirely smooth. Outside China, cargoes of Australian lithium ore have gradually arrived following an earlier wave of concentrated shipments, lifting China's domestic inventories. However, overall inventories remain relatively low, spot ore availability is limited, processing margins for externally sourced ore remain low, and suppliers show little willingness to sell at lower prices. At the lithium salt segment, some producers have signaled production cuts due to disruptions in ore supply continuity and maintenance at production facilities. Combined with slower-than-expected arrivals of Zimbabwean resources, the increase in lithium carbonate supply during July and August may fall short of previous expectations.
Demand continues to provide some support to lithium prices. Midstream production schedules remain elevated, with demand from LFP cathode materials, energy storage cells, and EV battery cells providing support for lithium carbonate consumption. If peak-season inventory building materializes as expected after September, inventory drawdowns at lithium salt plants are likely to continue.
Market inventories have continued to decline recently, while a strengthening spot basis also indicates that trading appetite for orders around RMB 140,000/MT has not weakened materially.
Near-term market activity is driven by increased output from resumed production and expectations of a longer-term surplus. Lithium carbonate prices are likely to remain range-bound with a downward bias. However, temporary reductions in lithium salt output, elevated midstream production schedules, and expectations for the Q4 peak season should limit further downside. If prices further decline, downstream buyers’ willingness to restock may improve again, but expectations of longer-term oversupply will still cap the extent of any rebound.
Energy storage cells in China
Over the past week, transaction prices for China’s LFP energy storage cells remain largely stable. Prices are as follows:
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100 Ah: RMB 0.420–0.485/Wh, averaging RMB 0.453/Wh (flat WoW)
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280 Ah: RMB 0.340–0.400/Wh, averaging RMB 0.370/Wh (flat WoW)
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314 Ah: RMB 0.340–0.400/Wh, averaging RMB 0.370/Wh (flat WoW)
Following the sharp drop in lithium carbonate prices, cost pressures on cell manufacturers have eased, though mainstream transaction prices have not declined accordingly. Price increases remain limited across cell formats. 100 Ah cells have been supported by demand from residential and non-China user-side markets, but some channels continue to face pressure to draw down inventories. Supply of 280 Ah and 314 Ah cells for utility-scale storage remains ample, with prices stable at low levels.
On the order side, cell demand remains supported, but manufacturers are prioritizing order stability and delivery assurance in their pricing strategies. Following the decline in raw material costs, some cell manufacturers are seeking to secure long-term orders at relatively low prices to improve delivery certainty and capacity utilization in Q4. Utility-scale storage projects continue to rely primarily on 314 Ah cells. While cells above 500 Ah and 600 Ah are seeing continued adoption, they have yet to alter the prevailing transaction mix in the near term. Given that energy storage demand remains elevated, further sharp declines in cell prices are limited. However, ample production capacity, increased customer bargaining power, and lower raw material costs constrain the potential for near-term price increases across cell formats. Transaction prices are expected to remain largely stable, with minor fluctuations in some orders depending on customer mix and delivery lead times.
Energy storage system (ESS) in China
Transaction prices for electrochemical ESS in China have held steady 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 0.52-0.63/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)
With cell prices stabilizing, the system segment lacks a direct catalyst for further price reductions. Meanwhile, non-cell cost pressures—including those associated with PCS, thermal management, fire protection, EMS, grid-connection commissioning, and warranty services—persist, reducing system prices’ sensitivity to fluctuations in any single raw material. At already-low price levels, competition now centers more on configuration completeness, grid-integration compatibility, and delivery accountability than on simply driving down equipment unit prices.
Among recent standalone ESS equipment tenders, preferred bidders were announced on July 11 for two projects totaling 1.8 GWh at the Gansu Tengger Desert renewable energy base, with Shandong SCETL shortlisted for both. The Huanghuatan 480 MW/960 MWh project received a total bid of RMB 508.62 million, equivalent to approximately RMB 0.52981/Wh, while the Hongshagang 420 MW/840 MWh project received a total bid of RMB 447.10 million, equivalent to approximately RMB 0.53226/Wh. These prices are within the mainstream price range of four-hour ESS, reflecting that utility-scale solar-plus-storage projects still impose certain minimum requirements for system configuration and contract performance despite ample competition. Prices are expected to remain low and stable, with variations driven by capacity, equipment configuration, warranty terms, and delivery timelines.
The impact of the recent battery consumption tax policy adjustment on the energy storage supply chain should be evaluated separately across different market scenarios. Under the latest policy, lithium-ion batteries and other covered products will incur a 2% consumption tax starting September 1, 2026, increasing to 4% from September 1, 2027.
In the Chinese market, the reinstated tax burden will modestly increase cell and system costs, with a greater impact on projects awarded at low prices or operating with thin return margins. Some project owners and system integrators may accelerate efforts to lock in orders or revise contractual terms before the policy takes effect.
For export markets, the consumption tax should not be treated directly as an additional cost, as eligible battery products remain exempt and refundable. More significant impacts on export quotes and margins stem from the reduced VAT export rebate rate and the complete elimination of export rebates in 2027.
Overall, the consumption tax adjustment is expected to cause only limited disruption to energy storage demand in 2026. However, once the tax burden coincides with changes to export tax rebate policies in 2027`, differences among companies in order quotes, project return assessments, and supply chain strategies outside China are likely to become more pronounced.