What is really going on with lithium inventory levels?

Amidst conflicting reports of lithium inventory levels, Benchmark’s latest Monthly Lithium Inventory China shows that chemicals inventory across carbonate and hydroxide fell a further 2.8% m-o-m in August. This continues the trend seen so far in 2026 where inventory levels have fallen 10.0% year-to-date and the typical H1 build and H2 draw down pattern has been absent. “It leaves the market without the buffer between supply and demand that dampens price movements as participants near the final quarter of the year, where consumption is typically strongest,” said Adam Megginson, Benchmark’s principal lithium price analyst.