The fundamentals of lithium carbonate may return to a tight balance in 2026

According to industry sources, the supply and demand relationship in the lithium carbonate market will see substantial improvement by 2026. Recently, the Jiangxiawo lithium mine of CATL and the Shui Nan mine of Guoxuan High-Tech have entered the license renewal stage, and the issuance of new mining licenses may still take a long time. In addition, the treatment of solid waste such as lithium slag remains a constraint on the growth of lithium production capacity. In the medium to long term, the fundamentals of lithium carbonate may return to a state of tight balance by 2026, with most supply increments expected to be released in the second half of the year. Leading lithium companies are optimistic about the demand in the energy storage sector, which has become a new engine for lithium carbonate demand. (Shanghai Securities Journal)