Lithium Hydroxide Price Trend and Forecast

Lithium Hydroxide Regional Price Overview

Get the latest insights on price movement and trend analysis of Lithium Hydroxide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Lithium Hydroxide Price Trend for the Q3 of 2024

Asia

The lithium hydroxide market faced a weak outlook throughout the third quarter of 2024. Prices showed a gradual decline, influenced by the cost of feedstock lithium and reflecting similar trends observed in other lithium derivatives, such as lithium carbonate. The market contended with an oversupply of lithium metal, coupled with high inventory levels. In response, some production facilities reduced output to better align with demand.
 

Lithium Hydroxide Price Chart

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Downstream demand from the automobile sector remained low, resulting in reduced battery sales. Demand from the electrode sector showed some improvement, but it remained limited. The market was under pressure from high inventories and unused capacity. As inventories continued to build, prices experienced further declines. Overall, the downward trend in lithium prices exerted additional pressure on lithium hydroxide prices, which followed a similar downward path throughout the quarter, impacted by high inventories and subdued demand.

Europe

The price trajectory of lithium hydroxide followed a trend similar to that observed in other global markets. The primary factors contributing to the price decline were the oversupply of feedstock lithium and weaker-than-expected demand from downstream sectors. As the automobile sector, a major driver of lithium carbonate demand, faced low new car sales during this period, prices were further pressured by the resulting reduced demand.

North America

In North America, the prices of lithium hydroxide mirrored global trends, with a decline in prices contributing to a generally pessimistic market outlook throughout the third quarter of 2024. Demand from the automobile and other sectors remained average, while falling feedstock prices exerted additional downward pressure on lithium hydroxide prices. Despite this, substantial investments from companies such as Panasonic, LG Energy Solution, and Samsung SDI continued to support the growing electric vehicle sector.

Additionally, International Battery Metals (IBAT), a Canadian company, announced the suspension of operations at its direct lithium extraction plant, citing a significant decline in lithium prices, which have fallen by over 80% in the past year due to overproduction in China and reduced electric vehicle demand. This downturn has also affected other companies, including Chinese battery manufacturer CATL, which has halted production at some mines, and Albemarle, which has implemented cost-cutting measures and layoffs.

Analyst Insight

According to Procurement Resource, the prices of lithium hydroxide are expected to remain wavering due to ample supply high inventories of feedstocks, and low demand from the downstream sectors.
 

Lithium Hydroxide Price Trend for the Q2 of 2024

Asia

As a leading player in the lithium market, China witnessed fluctuations in lithium hydroxide prices throughout the quarter. Early in Q2, prices saw a slight decline due to a combination of supply-demand imbalances and a shift in production towards lithium carbonate, which was in higher demand for lithium-iron phosphate batteries.

This adjustment highlighted the ongoing interplay between different lithium products and market sentiments within China. Meanwhile, the overall slowdown of the downstream industries further lowered the confidence of both investors and consumers in this sector. The reduction of export margins amid the struggling trading sector under the influence of escalating freight charges further pressured the lithium hydroxide market during the second quarter of 2024.

Europe

In contrast to the easing prices in Asia, the Delivered Duty Paid prices in Europe on lithium hydroxide imports edged higher during Q2. This increase was driven by firmer offers from producers and intermediaries, reflecting a more stable supply-demand balance compared to the more volatile Asian markets. Amid this surge in the pricing patterns, a majority of EV producers and other downstream industries looked to improve their supply chain functioning and reduce their dependence on Chinese imports, which might be reflected in the pricing patterns of the commodity in the upcoming months.

North America

Several critical factors influenced lithium hydroxide prices in North America during the second quarter of 2024. These include the pace of global electric vehicle (EV) adoption, advancements in battery technology, geopolitical tensions impacting lithium supply chains, and environmental policies influencing mining and production practices. The EV market's growth remains a significant driver of lithium demand; however, the exceeding reliance on overseas imports raised the trading sectors' concerns. However, no ease in inflationary pressure and increased interest rates dampened the momentum of the market towards the end of the quarter, resulting in the slowing down of lithium hydroxide market momentum by the end of the second quarter.

Analyst Insight

According to Procurement Resource, the price of Lithium Hydroxide is estimated to be adversely affected by the growing popularity of its substitute, lithium carbonate, and increasing challenges in the trading sector in the next quarters of 2024.
 

Lithium Hydroxide Price Trend for the Q1 of 2024

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Asia

During the first quarter of 2024., the Chinese producers reported few inquiries and limited buying interest from the seaborne Asia market. This limited purchasing activities were also observed in Japan and South Korea, as they were skeptical of the positioning of the downstream industries during the aforementioned period. The market also lacked direction as the trading sector grappled with the loss of exports while the manufacturing industries struggled with the soaring cost of crude oil and other raw materials.

The spodumene prices, however, rose steadily in the latter phase of the quarter, with higher offers, concluding the lithium hydroxide quarter on an optimistic note. However, surge in Australian-sourced spodumene raised expectations for Australian miners, although the downstream industries remained vigilant about downstream chemical prices in China and potential shifts in direction.

Europe

The lithium hydroxide market in European countries faced a continued downturn due to increased imports of cheaper goods, primarily from Russia and the United States. This noticeable decline was further influenced by the decreased demand in downstream lithium-ion battery manufacturing, coupled with declining profit margins. The production costs have also declined due to lower prices of upstream raw materials like lithium carbonate and spodumene, impacting both domestic and international markets.

The sales figures of battery-only electric cars, however, improved but at a slower pace, insufficient to support the lithium hydroxide price trend during the first quarter of 2024. The outlook of the market was further challenged by limited trading activities particularly with the Asian countries due to the disruption of Red Sea trade route and consistent rise in the Houthi attacks on the shipments, leading to delays in the shipment arrivals and rise in the freight charges.

North America

In the first quarter of 2024, the US lithium hydroxide market continued its decline due to sustained weak demand and an oversupplied market. The manufacturing activities in North America intensified during an already inventory excess phase due to increasing efforts to mine, extracting, and refining lithium process further raised the concerns of the trading sector. However, towards the end of the quarter, the prices of lithium hydroxide stabilized with an uptick in the trading activities and exporting routes.

Exxon Mobil Corp also initiated its plans of manufacturing battery-grade lithium hydroxide through a new direct-lithium extraction project in Arkansas, in order to reduce the reliance of the market on overseas imports. The energy storage sector also showcased rapid evolution supporting the lithium hydroxide prices. Despite challenges, including higher interest rates impacting capital costs, stable lithium hydroxide prices towards the end of the quarter, projected an optimistic picture for the traders.

Analyst Insight

According to Procurement Resource, the price trend of Lithium Hydroxide is expected to pace forward as the improving sales number of downstream EV sector will boost the momentum of lithium hydroxide price trend.
 

Lithium Hydroxide Price trend for the October - December of 2023

Asia

The outlook of the lithium hydroxide market was not favorable in the last quarter of 2023. The market witnessed a crash in the lithium hydroxide price trend as the demand nosedived. The significant employer of lithium hydroxide, the EV battery sector, itself suffered from the slowdown in market activities that pushed the manufacturing industries to lower their production volumes. However, the Chinese mining sector was in bloom, and the raw materials required for the production of lithium hydroxide flooded the market, which led to an excess of pressure on the lithium hydroxide traders and a consequent fall in its price graph.

Europe

The influence of Asian countries reached the European continent, too, and the lithium hydroxide prices here traced a downward trajectory. The market dynamics and functioning of lithium hydroxide are majorly based on the batteries and automotive sectors, both of which found it difficult to sustain themselves throughout the fourth quarter of 2023. Another deteriorating factor that played a remarkable role in keeping the lithium hydroxide prices in the red zone was the loss of trade with the neighboring countries on account of the ongoing geopolitical conflicts.

North America

The North American market of lithium hydroxide exhibited a weak trend in the entire fourth quarter of 2023. The region suffered from the loss of customers from the EV and automotive sectors. The exports from the region further declined as the drought-like conditions in the Panama Canal restricted its usage while the Suez Canal route faced port congestion. Also, the mining imports in the region surpassed demand capacity, leading to a rise in inventories and the eventual downfall of the lithium hydroxide price trend.

Analyst Insight

According to Procurement Resource, the price trend of Lithium Hydroxide are expected to be driven by the global trade of the raw materials and procurement rates of the downstream EV sector.
 

Lithium Hydroxide Price trend for the July - September of 2023

Asia

The lithium hydroxide market in Asia registered dipping numbers throughout the third quarter of the year 2023. The market prices were pushed downwards primarily because of the existing excess stocks in the inventories. To add to the pressure, consumer demands exerted bearish sentiments for lithium hydroxide purchases.

Given the astonishing demands and revenues same time last year, the suppliers had ordered bulk products expecting higher returns. However, the effort fell flat since the downstream industries didn’t respond in the desired manner. Overall, with dull customer support and overflowing supplies, the lithium hydroxide price graph moved southward sharply, and the market momentum remained tepid for the entire period.

Europe

In the European lithium hydroxide market, the price trend followed its Asian counterpart as the market performance was observed to be bearish throughout the said period. The reduced demands from the consuming sectors, especially EV markets, led to this consistent depreciation in the lithium hydroxide price graph in Europe. Overall, dull lithium hydroxide market trend were observed.

North America

The slump in the global lithium hydroxide market was also reflected in the North American market, as the price trend registered a slumping pattern here as well. The feeble demands amidst overflowing inventories forced suppliers to discount the prices in order to maintain market momentum. Overall, bearish market sentiments were observed.

Analyst Insight

According to Procurement Resource, Lithium Hydroxide prices are expected to carry on with the current decline since the market offtakes are not likely to pick up anytime soon.
 

Lithium Hydroxide Price trend for the First Half of 2023

Asia

Lithium hydroxide prices registered a steep decline in the first two quarters of 2023 as the downstream industries seemed hesitant to raise new orders. Further disruptions in the supply chains due to uneven trend in the cost of transportation and overall logistics caused lithium hydroxide prices to move downwards. In the second quarter, the support from the upstream industries also took a negative toll, further pushing its prices towards a southwards side.

Europe

The bearish trend in lithium hydroxide prices in European countries resulted from the price war between some big market players in the automotive sector. Due to increased competition in the market, the traders had to reduce their price ranges, negatively affecting the price trend of lithium hydroxide. The downstream industries also faced the adverse effects of weak economic conditions and trading sentiments.

North America

In North America, the price of lithium hydroxide faced a consistent decline due to low demand, especially from the Asia-Pacific markets. The failure of two major banks in the region further accelerated the fall in the market sentiments of lithium hydroxide.

The struggle also escalated due to the consistent drop in the production and procurement of EVs in the region in the first quarter. In the second quarter, the economic recovery of the market activities was slow, toning down the demand for lithium hydroxide, leading to a decline in its prices.

Analyst Insight

According to Procurement Resource, the price trend of Lithium Hydroxide is estimated to be affected by the low demand from the electric vehicles sector and financial strain on the global markets.

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