Lithium Battery Industry Chain Shows Significant March Production Recovery; Multi-Segment Volume and Price Increases Expected

AI问：How can the supply and demand pattern behind the soaring lithium carbonate prices be optimized?

Since November 2025, lithium carbonate futures prices have increased by over 70% by March 23, 2026, with a cumulative rise of more than 19% this year. As a core raw material in the new energy industry chain, the supply and demand landscape of the lithium carbonate market continues to improve, and the upward price trend has become clearly evident, providing significant support for profit recovery in the A-share lithium battery sector. Media reports indicate that in March, production in the lithium battery industry chain has fully rebounded. Coupled with the implementation of the “trade-in” policy after the holiday and new vehicle launches, overall demand for lithium batteries is expected to remain positive throughout the year.

Dongguan Securities research report points out that in March, demand in the lithium battery market recovered rapidly, with the industry’s planned production significantly increasing month-on-month. In terms of power batteries, the full implementation of subsidies for trade-in programs after the holiday, spring auto shows promoting sales, and new vehicle launches by automakers are expected to gradually drive a new round of demand release. For energy storage, supply and demand remain strong, supported by domestic policies on capacity and electricity price compensation for new energy storage, and geopolitical conflicts in the Middle East further boost energy storage demand. Adjustments to export tax rebate policies for battery products have stimulated short-term export rushes. The overall demand growth for lithium batteries throughout the year remains optimistic, while capacity expansion at the material end is relatively cautious. The supply and demand pattern along the industry chain continues to improve, with multiple segments likely to see upward price trends, and a combined increase in volume and price is expected.

According to the Caixin News thematic database, among related listed companies:

Rongbai Technology has entered the market with a new low-cost, high-performance production process for iron lithium, making significant progress in onboarding major clients and capacity acquisitions.

Hunan Yune is a leader in lithium iron phosphate industry, benefiting from the explosive demand in downstream new energy vehicles and energy storage. The company’s lithium iron phosphate cathode material shipments have achieved rapid growth.

(Caixin News)