Why did lithium prices crash from 2022 highs?

Lithium carbonate prices reached record highs in late 2022 as EV demand outran supply. Prices then fell sharply as new mining and refining capacity came online, particularly from Chinese converters and Australian and South American producers, pushing the market into surplus. The cycle illustrates how quickly battery-metal supply can respond to high prices.

What is the difference between lithium carbonate and lithium hydroxide?

Lithium carbonate is the more traded form and the underlying for the GFEX futures contract used as the primary global benchmark. Lithium hydroxide is preferred for high-nickel cathodes (NMC811 and NCA) used in long-range EVs. Spot prices for the two products often diverge based on the cathode mix demand.

Where is lithium produced?

Australia is the largest lithium producer (mostly hard-rock spodumene), followed by Chile and Argentina (brine operations in the 'Lithium Triangle'), and China. Refining capacity is heavily concentrated in China, which converts spodumene concentrate into battery-grade lithium chemicals.

Lithium (LC) Live Chart

Written by

MetalCharts Editorial

Published December 1, 2025· Updated June 10, 2026

The current lithium spot price is $14,532.06 per metric ton, -2.37% over the past 24 hours.

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About Lithium

Lithium is a soft alkali metal and a critical input for rechargeable batteries powering electric vehicles, consumer electronics, and grid-scale energy storage. The Guangzhou Futures Exchange (GFEX) lithium carbonate contract is the leading global benchmark for battery-grade lithium pricing.

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Frequently Asked Questions About Lithium

Why did lithium prices crash from 2022 highs?: Lithium carbonate prices reached record highs in late 2022 as EV demand outran supply. Prices then fell sharply as new mining and refining capacity came online, particularly from Chinese converters and Australian and South American producers, pushing the market into surplus. The cycle illustrates how quickly battery-metal supply can respond to high prices.
What is the difference between lithium carbonate and lithium hydroxide?: Lithium carbonate is the more traded form and the underlying for the GFEX futures contract used as the primary global benchmark. Lithium hydroxide is preferred for high-nickel cathodes (NMC811 and NCA) used in long-range EVs. Spot prices for the two products often diverge based on the cathode mix demand.
Where is lithium produced?: Australia is the largest lithium producer (mostly hard-rock spodumene), followed by Chile and Argentina (brine operations in the 'Lithium Triangle'), and China. Refining capacity is heavily concentrated in China, which converts spodumene concentrate into battery-grade lithium chemicals.