Lacklustre EV sales and geopolitical tension weigh on lithium prices

Underwhelming EV sales figures by Chinese automakers in February and heightened geopolitical tensions in the Middle East combined leading to a dramatic drop in daily lithium prices. On Tuesday 3rd of March 2026, the price of lithium futures on China’s Guangzhou Futures Exchange (GFEX) fell by its daily limit (13%) from around 172,000 RMB/tonne to 150,860 RMB/tonne. Weakening sentiment amongst lithium futures traders was quickly mirrored in the physical spot market with Benchmark’s Lithium Carbonate (battery, spot) EXW China price settling at 157,100 RMB/tonne on 3 March, a 9.2% day-on-day decrease.