Rising overseas demand for energy storage, overall smooth transmission mechanism of lithium prices

After hitting a high of 20,988 yuan per ton, lithium prices have recently retreated. However, as of the close on May 29, the price of lithium has still risen by over 42% year-to-date. According to interviews with reporters, the robust demand for energy storage downstream has provided solid fundamental support for the price of lithium. Leading energy storage battery companies are already operating at full capacity, and institutions predict that global energy storage demand will increase by over 50% by 2026. Against the backdrop of high lithium prices, the industry chain has overall achieved smooth transmission through mechanisms such as price linkage and downstream direct procurement, but small and medium-sized manufacturers still face some friction due to their lack of bargaining power. End-user automotive companies have already started raising prices, forming a closed loop of cost transmission.