Shanghai, November 22 (SMM)-Lithium mining market sentiment further heated up. SQM, the world's second-largest lithium miner, predicts that the average lithium price in the fourth quarter will rise by nearly 50% compared to Q3.

The price of lithium concentrate rose sharply, supporting the price of lithium salt. SMM data shows that as of November 19, the average domestic battery-grade lithium carbonate price was 198,500 yuan/ton, an increase of 275.5% from the beginning of the year.

As of November 19, the average domestic spot price of battery-grade lithium hydroxide was 188,000 yuan/ton, an increase of 254.7% from the beginning of the year. Lithium carbonate may have formed a supply gap of about 16% in the past two months. Although material factories clear inventory and traders sell goods, which may ease supply pressure, the fundamentals are strong. The price of lithium carbonate is expected to rise slightly. In the fourth quarter, the long-term order price of lithium concentrate rose to US$1,650/ton, while the price of battery-grade lithium carbonate was 190,000 yuan/ton. Lithium salt plants that have signed long-term orders still have the upper hand.

In the case of tight supply, lithium prices may remain firm, as do concentrate prices. The curtailment policy was relaxed, and the output of cathode materials continued to grow. LFP production demand is bullish, pushing up the demand for lithium carbonate. The third round of price increases for lithium batteries began, leading the price of lithium carbonate.

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