Lithium providers seek to increase prices in the 2025 contract negotiations

Lithium buyers and its sellers hold talks about the annual offer of 2025, while the producers are pushing to the main metal in the making batteries to print better conditions, another year has seen full challenges. Lithium prices tend to achieve the second annual decline, but the worst appears to be after the price has fallen by about 90% from the highest levels. During the negotiations on the next year contracts, lithium factories try to reduce the price cuts that clients claim in the battery supply chain, according to people who are familiar with the matter. Asia is responsible for most contracts, transactions are discussed with a discount ranging from zero to 2% of the immediate price index, according to the informed who asked not to reveal their identity so that they could discuss secret matters compared to discounts between 5% and 10% in a number of contracts 2024 in the final round of negotiations. Reducing the price reduction coincides with the continued suffering of producers from the small profit margin, and indicates the sector’s hope of a minor improvement in the circumstances over the next twelve months, and transactions will include negotiations on quantities, periods and other variables. The negotiations on the provision of lithium chemicals produced by refineries will be allocated to clients, including manufacturers of negative poles, batteries or electric vehicles. Since Asia is the largest buyer of lithium through a major difference from others, most long -term contracts are for most of the purchases closed by consumers from South Korea, Japan and China. The impact of electric cars last year was full of challenges before lithium, as the slowdown in the adoption of electric cars worldwide has led to a glut in the market. However, there are factors that have helped price stability this term, such as increasing activity in the Chinese market, and some focus at the beginning of the period on raising batteries to the United States before Donald Trump officially held office. Just a few years ago, long -term stock contracts were determined, but that turned into the era of electric cars, as major prices in prices caused the cost -related challenges for batteries and cars, which led to the transformation of the annual contracts in a similar way to other minerals, such as buyer. The limited contracts are concluded in exchange for an increase or reduction in a third -party index for immediate prices that both parties agreed to the contract. The decline in the prices of the metal was among the factors that led to the largest annual decline in the average price of batteries units for seven years, according to “Bloomberg New England Finance”, and this represents a gift for electric car manufacturers whom expect that the next year will be full of Challenges in light of the concerns associated with the economy of China, the slowdown and the pace of the transformation to electric vehicle in Europe, and the expected changes in the policies of the United States about emissions and trade.