Lithium producers from China to Australia have reported sharply higher profits as rising battery-storage demand lifted prices for the metal, Bloomberg reported.
Chinese producers Tianqi Lithium and Ganfeng Lithium each reported their strongest first-half profit in three years, with Tianqi expecting the market to remain tight for the rest of 2026.
China’s spot lithium price rose 22% in the first half as energy storage emerged as an important new source of demand, driven partly by growth in data centres and renewable power.
US lithium producer Albemarle said global lithium demand increased 45% year on year through May, outpacing supply growth.
Australia’s PLS Group swung to an A$526m profit for the year to end-June from a loss previously and expects a supply shortfall to support prices in coming months.
Zijin Mining also sees scope for lithium prices to rise further in the short term as inventories in China decline.
Producers are meanwhile adding capacity. Chile’s SQM raised its 2026 production guidance, while China’s Chengxin Lithium plans to spend more than $476m on lithium-sulphate plants in Zimbabwe and Nigeria.
The future outlook further is less certain. UBS expects stronger supply growth to push the lithium market back into surplus in 2027 and has cut its longer-term price forecasts.
