New York, Jan 21, 2026, 07:39 (EST) — Premarket
- Battery-grade lithium carbonate in China last traded at 158,500 yuan per tonne, marking a 3.9% increase.
- China’s lithium futures market is tightening risk controls and raising margins amid price swings.
- U.S.-listed lithium stocks climbed in premarket trading, with Albemarle leading the gains.
Lithium prices in China rose once more on Wednesday, with battery-grade lithium carbonate hitting 158,500 yuan ($20,092 a metric ton, VAT excluded), up 3.9% from the previous day, according to Shanghai Metals Market data. 1
Lithium carbonate is crucial now, as it’s a key ingredient in lithium-ion batteries. When its price jumps, battery and cathode manufacturers feel it first, which then ripples into contract negotiations with miners and processors.
In the physical market, SMM priced battery-grade lithium carbonate between 155,000 and 162,000 yuan per tonne, averaging 158,500 yuan. The leading lithium carbonate futures contract jumped up to 7.25% during the session. SMM noted that downstream buyers continued to snap up supplies to meet “rigid demand” and to build inventories for February. 2
The Guangzhou Futures Exchange is tightening controls amid the rally. Starting with the Jan. 21 settlement, the daily price limit on lithium carbonate futures—the maximum allowed move per session—will expand to 11%. At the same time, margin requirements will increase to 13% for speculative trades and 12% for hedging. 3
Wang Bolong, a researcher at Haitong Futures, argued that wider limits aid “price discovery” and ease the liquidity crunch triggered by frequent limit moves. He added that higher margins increase leverage costs, which dampens short-term speculation. 3
Separately, the exchange cut trading frictions by adjusting fees and position limits. According to SMM, the transaction fee now stands at 0.032% of the trade value, with a minimum order size of 5 lots for opening positions. Non-futures traders face a daily cap of 400 lots for new positions. 4
Albemarle climbed roughly 5.8% to $172.54 in U.S. premarket trading. Chilean miner SQM also advanced, up 3.4% at $80.15. The Global X Lithium & Battery Tech ETF added 0.6%, hitting $70.00.
HSBC’s Ishan Jain raised Albemarle to a buy from hold, boosting his price target sharply to $200 from $117. He pointed to higher lithium prices as a key driver for stronger contract rollovers over the next 18 to 24 months. “Free cash flow and balance sheet are improving,” Jain noted. 5
Lithium’s surge has come swiftly, with the market now behaving like a momentum-driven play. If downstream buyers pause after hoarding, or if rising prices lure more supply back into the spot market, the rally could lose steam just as fast as it gained it.
Traders will be closely monitoring if futures volatility subsides following the new margin and limit adjustments, and whether spot trading remains robust as the February restocking period approaches. Albemarle’s next major event is its fourth-quarter 2025 earnings report, scheduled after the NYSE close on Feb. 11, with a conference call set for Feb. 12. Investors will be keen on any updates about pricing and contracts. 6
