Continued rally before reversal: Q2 2026 Lithium Price Review

The second quarter of 2026 began with a straightforward continuation of Q1's rally before turning to an uneven reversal. The two main trends played out as an inventory- and feedstock-driven surge through April and early May, followed by a rumour- and policy-sensitive correction through June. Underlying demand from EV and ESS production consistently proved more stable than the volatility in spot pricing suggested. After a reduction in export tax rebates took effect on 1 April, domestic Chinese lithium carbonate prices rose under improving consumption and still-tight chemical inventories, with stockpiles moving downstream rather than accumulating with producers or traders.  Hydroxide followed, albeit less aggressively. Outside China, seaborne Asia lagged notably. European and North American prices remained slower to react as buyers approached procurement with caution.