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In a recent statement, the chairman of Ganfeng Lithium, a prominent Chinese supplier of the battery metal, expressed optimism about the long-term trajectory of China's lithium industry.

Li Liangbin emphasized that the sector stands to benefit from the stabilization of lithium prices, foreseeing a sustained uptrend in the market.

According to Li, the increasing demand for lithium from power battery manufacturers, energy storage companies, and other sectors aligns with the global shift towards renewable energy sources. This trend, he asserted, is irreversible and will continue to drive growth in lithium consumption.

While acknowledging the likelihood of periodic fluctuations in prices, Li emphasized that such fluctuations are inherent in any upward market trajectory. He noted that despite recent challenges, including a surge in supplies and a slowdown in demand, the fundamental drivers of lithium demand remain robust.

Over the past year, China's lithium prices have experienced a significant decline due to an influx of supplies and subdued demand. Spot lithium carbonate prices, particularly in the world's largest electric vehicle market, have dropped to around 100,000 yuan ($14,000) per ton, marking a substantial decrease from their peak in November 2022.

The sharp decline in prices has impacted the profitability of lithium miners and raised concerns about the potential contraction of global output. Li emphasized the importance of stabilizing lithium prices within a range of 80,000 to 150,000 yuan, ensuring profitability for companies across the industry chain.

As a delegate of the National People's Congress at the annual parliamentary meeting in Beijing, Li's insights underscore the significance of lithium as a critical component of China's energy transition strategy. Amidst ongoing market dynamics, Ganfeng Lithium remains optimistic about the long-term growth prospects of China's lithium industry. Photo by Dnn87, Wikimedia commons.