Yichun, known as the ‘lithium capital of Asia’, faces challenges due to a drastic fall in lithium prices. Once thriving on the demand for electric-vehicle (EV) batteries, many in this Jiangxi province city now struggle. Companies are reducing or halting production to mitigate financial losses.

Lithium Supply Glut

The oversupply of lithium has led to this economic downturn. Just two years ago, Yichun excelled in the industry. State subsidies boosted EV production, causing lithium demands to peak.

Impact on Local Industry

Processors and producers are experiencing a difficult period. Despite previous growth, the market’s current conditions have forced many changes.

“Companies are navigating a rapidly changing market landscape,” commented local experts, highlighting the urgency for strategic adjustments.

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