Lithium Prices Hit 3-Year Lows in Q1 2025 as Supply Surges and Global Trade Risks Rise

Lithium prices have dropped to their lowest in three years, raising key questions about the future of EVs and batteries. What’s behind the slide? As China tightens its lead in battery production, the U.S. faces roadblocks, tariffs, policy shifts, and import dependence. Can the U.S. close the gap? Will cheaper lithium help or hurt the industry? The answers could shape the next wave of the global clean energy shift.

Lithium Prices Hit 3-Year Lows Amid Oversupply and Trade Tensions

In April 2025, lithium prices plunged to their lowest in over three years due to an oversupplied market and escalating trade tensions.

In the latest quarter lithium report, S&P Global highlighted,

• By April 16, lithium carbonate prices in China fell 5.4% to 70,000 yuan per tonne. It’s the lowest since January 2021.

• Similarly, prices for lithium carbonate shipped to Asia dropped 5.3% to $9,000 per tonne, the weakest since February 2021, according to Platts data.