Global lithium stocks experienced a powerful rally on Monday, ignited by an optimistic demand forecast from a major industry player. The surge came after Li Liangbin, chairman of Ganfeng Lithium Group, projected that lithium demand could grow by 30% in 2026, potentially even reaching 40%, which may drive prices of lithium carbonate significantly higher.
The rally was triggered by comments from Mr. Li, reported by Chinese and subsequently international media like Bloomberg. He stated that if growth accelerates to 40% next year, lithium carbonate prices could rebound to a range of 150,000 to 200,000 yuan per ton (approximately $21,100 – $28,100 USD).
Despite acknowledging a current market surplus of around 200,000 tons, Li believes rapidly rising demand will quickly draw down inventories. He emphasized that supply will struggle to keep pace, setting the stage for sustained price strength.
This bullish outlook immediately electrified the markets. The lithium carbonate futures contract on the Guangzhou Futures Exchange skyrocketed by the 9% daily limit, closing at 95,200 yuan/ton (about $13,400 USD)—its highest level since June 2024.
The positive sentiment swept across global exchanges, lifting lithium mining companies from the U.S. to China.
Beyond electric vehicles, the burgeoning large-scale battery storage sector is emerging as a critical new pillar for lithium demand. Chairman Li pointed to the rapid growth of energy storage systems for grid peak-shaving and powering AI data centers as a key factor offsetting slowing EV sales growth.
The price surge is also supported by supply-side concerns. A report from Reuters noted that production has yet to resume at CATL’s Jianxiawo lithium mine in Jiangxi province. The continued delay forces the battery giant to purchase lithium on the open market, reinforcing fears of a tightening supply.
Lithium carbonate prices have already been on an upward trajectory, gaining over 17% this month and nearly 30% since mid-October.
Market analysts suggest that the confluence of bullish guidance from a leading industry figure and fundamental drivers—energy storage expansion and persistent supply bottlenecks—is propelling lithium prices into a new phase of growth. If demand continues to outpace expectations, the room for further price appreciation could be substantial.
