The lithium market heads into 2026 after one of its most punishing years in recent memory, shaped by deep oversupply, weaker-than-expected electric vehicle (EV) demand and sustained price pressure. In 2025, lithium carbonate prices in North Asia sank to four year lows, forcing production cuts and project delays as the industry grappled with the consequences of years of aggressive supply growth. The second half of the year saw a rebound as lithium carbonate began a slow ascent. By December 29, prices had risen 56 percent from their January start position of US$10,798.54 per metric ton to US$16,882.63. While volatility and brief price rallies highlighted the market’s sensitivity to sentiment and policy signals, analysts increasingly see the sector’s first-half downturn as an inflection point. With high-cost supply under strain and inventories gradually tightening, expectations are building that 2026 could mark the start of a rebalancing phase, supported by long-term demand tied…
