Posted on 11 Feb 2025
Battery-grade lithium carbonate prices dropped on 10 February in China following the government’s announcement stopping the requirement of battery storage equipment in new renewable projects.
According to Chinese sources, the spot price of battery-grade lithium carbonate averaged CNY 77,150 ($10,560)/tonne on Monday, down CNY 150/t from the previous trading day. Yet, spodumene concentrate (5.5%-6%, cif China) remained relatively stable at $841/tonne.
The decision was announced by the National Development and Reform Commission and the National Energy Bureau of China. Previously, the government would require a 1,000-megawatt renewable energy project to build a 100-MW lithium battery energy storage power station. The measure is expected to have a significant impact on the energy storage demand, Kallanish Power Materials notes.
The government also says the move markets the “official start of full market competition” of new energy electricity, distancing itself from subsidising the price of renewable power.
“Renewable electricity will now equitably bear the cost of regulating the power system,” the two Chinese government departments claim. “The value of various sources in the power system will be more fully reflected, and the coordinated development will be better guided.”
Last year, Rao Hong, an academician of the Chinese Academy of Engineering, estimated that 28 provinces (including autonomous regions and municipalities) across China had introduced policies to allocate 10-20% of new energy storage capacity for new energy projects. The proportion of BESS in power supply-side energy storage had exceeded 80%.
Source:Kallanish Power Materials
