Lithium hydroxide

Lithium Hydroxide: Recent Commodity Market Intelligence Report

I. Price Trends

* Benchmark Prices:
* As of July 7, 2026, the Business Society’s benchmark price for battery-grade lithium hydroxide stood at RMB 155,000.00 per ton, while that for industrial-grade lithium hydroxide was RMB 143,000.00 per ton.
* Compared with late June, lithium hydroxide prices have rebounded. On June 26, the benchmark price for battery-grade lithium hydroxide was RMB 145,000.00 per ton, and for industrial-grade lithium hydroxide it was RMB 133,000.00 per ton.

* Spot Prices:
* As of July 7, 2026, the spot quotation for industrial-grade lithium hydroxide (coarse granules, LiOH ≥ 56.5%) was RMB 142,600 per ton—unchanged from the previous day. Over the past week, the price for this specification rose by RMB 14,700 per ton, representing a 11.49% increase; over the past month, it rose by RMB 3,400 per ton, or 2.44%.

II. Market Dynamics

* Supply-Demand Balance:
* The lithium hydroxide market faces tight supply-demand conditions, primarily driven by robust demand growth from new energy vehicles (NEVs) and energy storage systems (ESS). In particular, demand for high-nickel ternary batteries and ESS continues to rise significantly.
* On the supply side, China—the world’s largest producer and exporter of lithium hydroxide—exerts substantial influence on global markets. However, recently, high-cost overseas production capacity has faced increasing pressure to exit the market, leading to higher imports and lower exports of lithium hydroxide from China—further intensifying domestic supply-demand tensions.

* Industry Developments:
* Ultra-high-purity 4N-grade (99.99%) lithium hydroxide has emerged as a new market hotspot. Driven by stringent purity requirements from dry-electrode technology and solid-state batteries, demand for 4N-grade lithium hydroxide is surging explosively. Yet globally commissioned production capacity remains extremely limited, resulting in a substantial supply-demand gap.
* YAHUA Group and Ganfeng Lithium are currently leaders in the 4N-grade lithium hydroxide segment and serve as primary market suppliers.

* Enterprise Quotations:
* Market quotations for lithium hydroxide vary significantly depending on brand, specification, and origin. For instance, Ganfeng Lithium’s quoted price for battery-grade lithium hydroxide is RMB 72,000 per ton (note: this figure may reflect a specific transaction under special terms and does not represent the overall market level); industrial-grade lithium hydroxide quotations differ across regions and suppliers.

III. Analysis & Assessment

* Price Trend Analysis:
* Lithium hydroxide prices have recently trended upward, primarily attributable to tightening supply-demand dynamics and sustained demand growth from NEVs and ESS. Especially pronounced is the soaring demand—and corresponding price pressure—for 4N-grade lithium hydroxide due to its acute supply shortage.
* Nevertheless, lithium hydroxide prices remain sensitive to fluctuations in raw material costs—particularly lithium carbonate. Recently, lithium carbonate prices have declined somewhat, potentially exerting downward pressure on lithium hydroxide pricing.

* Supply-Demand Analysis:
* Demand for lithium hydroxide from NEVs and ESS is expected to continue growing steadily. Notably, the exceptionally high purity requirements of high-nickel ternary batteries and ESS will drive explosive growth in demand for 4N-grade lithium hydroxide.
* On the supply side, although China possesses vast lithium hydroxide production capacity, its capability to produce ultra-high-purity grades remains limited. Concurrently, the ongoing market exit of high-cost overseas capacity will further exacerbate domestic supply-demand imbalances.

IV. Outlook

* Price Forecast:
* Lithium hydroxide prices are expected to maintain an upward trajectory, especially for 4N-grade products, whose prices are projected to surge significantly. Sustained demand expansion from NEVs and ESS will further tighten market supply-demand conditions.
* However, the pace of price increases may be moderated by volatility in upstream raw material prices—especially lithium carbonate. Should lithium carbonate prices decline substantially, some downward pressure on lithium hydroxide prices could emerge.

* Market Trend Forecast:
* The lithium hydroxide market is poised to exhibit robust activity on both supply and demand fronts. Rapid development of NEVs and ESS sectors will ensure continued demand growth.
* 4N-grade lithium hydroxide will become a key market focus area. Its pronounced supply-demand imbalance will spur increased investment and expanded production efforts by related enterprises—and catalyze continuous innovation and technological upgrading across lithium hydroxide manufacturing processes.