NEW YORK, Feb 2, 2026, 07:06 EST — Premarket
- China’s spot lithium carbonate prices continued to slide, while futures remained volatile.
- U.S.-listed lithium shares dropped in premarket action, following weaker price signals.
- Traders are eyeing any fresh buying signals from China and the upcoming producer earnings reports.
Battery-grade lithium carbonate — the refined chemical essential for lithium-ion batteries — kept sliding in China Monday. The Shanghai Metals Market index dropped to 154,434 yuan per metric ton, according to SMM. Prices for battery-grade material ranged between 145,000 and 166,000 yuan a ton, while industrial-grade traded slightly lower at 142,000 to 162,000 yuan, SMM noted. China’s top lithium carbonate futures contract wavered sharply in a 132,400-152,800 yuan band as upstream sellers stayed cautious and downstream buyers probed for cheaper deals. (Metal News)
These moves carry weight as lithium prices attempt to sustain a rebound following an extended, supply-driven slump that pushed miners to trim costs and delay projects. Even minor daily fluctuations can tweak forecasts for miner cash flow and the expenses battery makers face for raw materials.
China still dominates as the key demand and processing center, with its spot and futures markets frequently setting the tone far beyond Asia. Weakness there tends to ripple into global producers’ share prices, particularly before earnings reports and guidance updates.
Albemarle slipped roughly 5.6% in U.S. premarket trade, hitting $170.63. SQM wasn’t far behind, down about 5.8% to $76.84. Lithium Americas took a bigger hit, falling around 10.5% to $4.87. The Global X Lithium & Battery Tech ETF also dropped, losing close to 5% to trade at $69.95.
On the derivatives front, the London Metal Exchange’s lithium hydroxide contract pegged to Fastmarkets ended month two at $19,600 a ton, slipping 1.51% on a day-delayed basis. Lithium hydroxide remains a crucial battery ingredient, especially in high-nickel cathode blends. (Lme)
Some analysts now see grid storage demand as a growing force in lithium markets, not just electric vehicles. “Energy storage is likely to become a game changer for lithium,” said Jinyi Su, an analyst at Wuxi-based consultancy Fubao, in an interview with Reuters last month. He cautioned, though, that soaring prices could undermine storage project economics. In that same piece, Morgan Stanley forecast a 2026 lithium carbonate equivalent shortfall of 80,000 metric tons, while UBS predicted a smaller deficit of 22,000 tons. (Reuters)
Traders are watching to see if buyers jump back in quickly after the latest dip, or if the weakness deepens, spreading from the futures curve into spot offers. Much hinges on whether downstream demand converts into solid orders instead of just inquiries.
The downside is straightforward. Should battery orders falter, or if supply keeps outstripping demand, lithium chemical prices could plunge sharply and remain depressed, forcing producers to slash costs and put expansion plans on hold.
U.S. investors will turn their attention to earnings and guidance next. Albemarle plans to report its fourth-quarter results after the New York Stock Exchange closes on Feb. 11. The company will hold a conference call on Feb. 12. (Albemarle)
