The price of lithium carbonate futures has risen significantly, with the main contract once surging by the daily limit. Concurrently, multiple leading companies in the lithium iron phosphate (LFP) cathode material industry are planning to raise prices.

Tianci Materials recently announced that its annual production line of 150，000 tons of liquid lithium hexafluorophosphate (LiPF6) will undergo maintenance from March 1， 2026. LiPF6 is a core raw material for lithium battery electrolyte.

The maintenance is expected to last 20 to 30 days. The 150，000 tons of liquid LiPF6 corresponds to approximately 50，000 tons of solid LiPF6， accounting for over 10% of China's effective total capacity in 2025.

01 Price Fluctuations

The lithium carbonate futures market has shown strong performance recently. According to data from the Guangzhou Futures Exchange， the main lithium carbonate contract once soared by 9%， hitting the daily limit-up and closing at 95，200 yuan per ton.

Li Liangbin， Chairman of Ganfeng Lithium， recently expressed optimism about lithium demand prospects. He predicted that lithium demand would grow by 30% in 2026， and if the growth rate increases to 40%， the price of lithium carbonate could rise to 150，000 yuan or even 200，000 yuan per ton.

The remarks from this industry leader directly fueled market enthusiasm. In addition to lithium carbonate futures， global lithium stocks also responded collectively， with simultaneous strength in both US and A-share markets.

02 Market Drivers

Energy storage demand is becoming a significant force driving the rise in lithium carbonate prices. In contrast to the slowdown in electric vehicle sales growth， the application of energy storage systems in grid peak shaving and power supply for AI data centers is growing rapidly.

Energy storage cell shipments are expected to achieve leapfrog growth. Under an optimistic scenario， the global lithium demand corresponding to energy storage is expected to exceed 600，000 tons in 2026， a year-on-year increase of approximately 74%.

On the supply side， delayed resumption of production at the Jianxiawo lithium mine in Yichun， Jiangxi， has further strengthened market expectations of tight supply. According to reports， the mine has not yet resumed production， and CATL still needs to purchase lithium ore externally to ensure lithium carbonate production.

03 Industry Adjustments

The lithium iron phosphate (LFP) industry is undergoing a profound transformation from price wars to a return to value. Several leading companies plan to uniformly raise the processing fee for their full range of LFP products by 3，000 yuan per ton starting in 2026.

This price adjustment directly reflects the industry's profit pressure. According to the cost index released by relevant institutions， from January to September this year， after deducting lithium carbonate costs， the average cost range for the LFP material industry was approximately 15，700 to 16，400 yuan per ton.

Zhou Bo， Secretary-General of the LFP Materials Branch of the China Industrial Association of Power Sources， pointed out that profitable companies in the industry account for only 16.7%， far lower than other core lithium battery materials， and profit pressure and financial risks urgently need to be resolved.

04 Production Halts for Maintenance

Tianci Materials recently disclosed in an announcement that it plans to carry out maintenance on its annual 150，000-ton liquid lithium hexafluorophosphate (LiPF6) production line at the Longshan North base starting March 1， 2026. The maintenance is expected to last 20 to 30 days.

The company stated that this maintenance halt is in accordance with the operational cycle requirements of chemical production facilities， aiming to ensure the normal operation and safe， stable production of subsequent liquid LiPF6 production units.

The current LiPF6 market is in an upward cycle， with prices rebounding strongly since the second half of 2025. Prices have risen by 250% within six months， and the current market average price is about 180，000 yuan per ton， showing a situation of "hard-to-find goods".

05 Company Developments

While announcing the production halt for maintenance， Tianci Materials also announced a reduction in the capacity of its lithium battery electrolyte expansion project and the cancellation of its battery recycling business.

The original plan， with a total investment of 1.332 billion yuan， was to build 300，000 tons of electrolyte and 100，000 tons of battery recycling capacity. It has now been adjusted to only building 250，000 tons of electrolyte, in the meantime canceling the battery recycling project.

Tianci Materials forecasts a significant increase in performance， expecting its 2025 net profit attributable to shareholders to be between 1.1 billion and 1.6 billion yuan， a year-on-year increase of 127.31% to 230.63%. This is mainly attributed to the continuous growth in new energy vehicle market demand and the rapid growth in energy storage market demand.

The installation share of lithium iron phosphate (LFP) batteries has reached 81.5%， and their penetration rate in the energy storage field has reached 99.9%. The explosive growth in energy storage demand has become a crucial support for the lithium market.

The maintenance halt of Tianci Materials' 150，000-ton liquid LiPF6 production line means that over 10% of market supply will temporarily exit. Meanwhile， the industry's "anti-involution" initiative is reshaping market pricing logic.

The comprehensive transformation of the lithium battery material industry is both a result of short-term supply-demand mismatch and reflects the profound shift of the industry from scale expansion to high-quality development. This wave of price increases， driven by costs and pulled by demand， may have just begun.