Stabilization and Recovery of Lithium Carbonate Prices Highlight Investment Opportunities in the Lithium Battery Industry Chain

From November 2025 to March 2026, lithium carbonate futures surged by more than 70%, with a year-to-date increase of over 19%. Since the low point in June 2025, battery-grade lithium carbonate has skyrocketed by 160.4%, marking a clear upward trend and providing core support for profit recovery across the Lithium battery industry chain.

Currently, domestic lithium carbonate inventories remain at a low level, with smelter inventories hitting a three-year low. Constrained by overseas policies, supply elasticity is insufficient, while downstream demand from energy storage and power batteries is steadily recovering. Multiple factors are driving lithium prices to rise easily but fall with difficulty. The price rebound has directly translated into corporate performance: leading enterprises such as Tianqi Lithium and Ganfeng Lithium have returned to profitability, confirming a profit inflection point for the lithium battery materials sector, which is now experiencing simultaneous growth in volume and price.

At the industry level, lithium resource companies are accelerating their overseas expansion by acquiring stakes and building joint ventures to secure high-quality global resources and strengthen supply chain security. On the demand side, a dual-engine drive from new energy vehicles and energy storage has emerged: energy storage battery sales have doubled, and domestic capacity tariff policies have improved the economic viability of energy storage projects. Meanwhile, the increase in battery capacity per new energy vehicle has further strengthened demand resilience.

Technological iteration continues to advance, with the industrialization of new technologies such as solid-state batteries, Silicon-based Anodes, and high-voltage Electrolytes accelerating, creating new incremental markets.

Investment opportunities focus on four areas: the global NEV export industry chain, high-growth energy storage sectors, material enterprises benefiting from the lithium price upcycle, and new technology tracks such as solid-state batteries. The Lithium battery industry chain is embracing a core opportunity of cyclical reversal and growth resonance.