Lithium prices fall below the "break-even point", supply and demand mismatch situation is difficult to change in the short term.

Combining with the trend of lithium carbonate prices, the recent situation of lithium mining companies is indeed not optimistic. Data from "My Steel Web" on May 15th showed that the average price of domestically produced battery-grade lithium carbonate was 65,050 yuan/ton on that day. Since the beginning of this year, the market price of battery-grade lithium carbonate has dropped by over 10,000 yuan. The current price of 65,000 yuan per ton has already fallen below the "break-even point" for most lithium carbonate production companies. The continuous decline in lithium prices may be due to insufficient downstream demand, but some market participants believe that the situation of traders "dumping goods" also has a significant impact on price trends. "With lithium prices continuously falling, some traders with goods on hand continue to 'dump goods', which may further push down lithium prices." A trader familiar with the lithium carbonate industry said that currently the supply growth of lithium carbonate is higher than downstream demand, and although lithium prices have reached the industry's recognized bottom, there is still insufficient momentum for an increase in the short term.