The lithium market has been grappling with a supply glut since the second half of 2022, with demand failing to keep pace with surging supply fuelled by a furious price surge that
But China’s power sector reforms helped to fuel stronger than expected demand for lithium used in batteries for power system storage in the second half of 2025, supporting a cautiously optimistic view of prospects for the new year.
The data centre building boom in China and globally has also driven growing power storage demand for lithium, said Jinyi Su, a Wuxi-based analyst at consultancy Fubao, adding that rapid growth in lithium demand from energy storage in the second half of 2025 has surpassed expectations.
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