New York, February 6, 2026, 06:55 EST — Premarket
- China’s battery-grade lithium carbonate settled at 134,500 yuan per tonne, with SMM’s benchmark index dropping roughly 4% from the previous day
- Albemarle tumbled roughly 7% before the open; SQM slipped around 4%, while Lithium Americas plunged close to 9%
- Traders are eyeing Chinese New Year demand cues alongside Albemarle’s Feb. 11 earnings for clues on pricing
Battery-grade lithium carbonate prices in China dropped once more on Friday, weighing on lithium-linked stocks in U.S. premarket trading as investors noted signs of cooling demand in the short term.
This is crucial since China’s spot market usually influences physical transactions and contract negotiations throughout the battery supply chain. As the Lunar New Year shutdowns near, traders are scrambling to figure out if restocking has wrapped up or if buyers will return for another push.
Lithium carbonate plays a crucial role in lithium-ion batteries for electric vehicles and grid storage. Fluctuations in its spot price can rapidly impact refiners’ margins and shift revenue forecasts for miners supplying the battery sector.
Shanghai Metals Market reported its battery-grade lithium carbonate index at 136,038 yuan per metric ton on Friday. Battery-grade lithium traded between 127,000 and 142,000 yuan per tonne, with an average price of 134,500 yuan. Industrial-grade lithium ranged from 124,000 to 138,000 yuan per tonne, averaging 131,000 yuan, SMM noted. The outlet also mentioned that downstream stockpiling ahead of the February Chinese New Year is “nearly complete.” (Source: https://news.metal.com/newscontent/1037604…)
On the previous day, SMM’s battery-grade index was at 141,706 yuan/tonne, marking about a 4% drop by Friday. China’s most active lithium carbonate futures contract saw a wild ride on Thursday, hitting its daily lower limit before rebounding, according to SMM. (Source: https://news.metal.com/newscontent/1037579…)
In U.S. premarket action, Albemarle dropped roughly 7.2% to $156.48 from its last close of $168.70. SQM’s U.S.-listed shares dipped around 4.0%, landing at $70.82, while Lithium Americas fell about 8.6% to $4.41.
Beyond China, the drop appeared in other key benchmarks. LME data showed lithium hydroxide CIF — including freight and insurance — slipping to $17,600 a tonne for the day-delayed month-2 closing price, down 3.3% on Thursday. Meanwhile, SP Angel’s daily market note, referencing Asian Metal prices, put lithium carbonate 99% China at $19,382 a tonne, down from $19,740. (Sources: https://www.lme.com/en/Metals/EV/Metals/Li… ; https://www.share-talk.com/sp-angel-todays…)
Company news added pressure. China’s Tianqi Lithium announced plans to reduce its stake in Chilean producer SQM. A recent filing revealed the company aims to sell up to 3.57 million Class A shares “at an appropriate time,” Bloomberg News reported via MINING.COM. (Source: https://www.mining.com/web/tianqi-lithium-…)
Longer-term demand remains intact, despite the heavy tape. UBS boosted its lithium price forecasts by 74%, calling this the start of a “third major pricing cycle.” Analyst Lachlan Shaw noted that EVs are “now close to achieving so-called triple parity,” which could “accelerate EV growth sales towards the end of the decade,” according to Proactive Investors. (Source: https://www.proactiveinvestors.co.uk/compa…)
That said, the immediate risk points downward. Once cathode and battery producers wind down holiday stockpiling — and with spot liquidity remaining tight as sellers dig in — prices could drop sharply, dragging equities down with them.
Investors will turn their attention to Albemarle’s fourth-quarter results after the NYSE closes on Wednesday, Feb. 11. They’ll be watching closely for any shifts in the company’s commentary on realized pricing and demand expectations for 2026. Following that, the focus shifts to how Chinese buying trends unfold around the Lunar New Year holiday starting Feb. 17. (Sources: https://investors.albemarle.com/news-and-e… ; https://www.forbes.com/sites/jamiecartereu…)
