Is the lithium demand surge real? On-the-ground insights from our Sichuan site visit

In the first week of May, battery-grade lithium carbonate prices reached US$24,800/t, a 71% increase from end-2025 and the highest level since September 2023. The Guangzhou Futures Exchange (GFEX) September contract also breached the CNY 200,000/t resistance threshold, reinforcing bullish market sentiment and signalling potential for further upward momentum. Against this backdrop, Wood Mackenzie conducted a site visit to Sichuan's battery supply chain in late April to gain on-the-ground insights into key industry trends. We visited multiple facilities across the value chain, including lithium converters, cathode active material (CAM) producers, and cell manufacturers (company details provided at the end of this report). Given the market's growing focus on energy storage systems (ESS) and LFP chemistries, we paid particular attention to LFP CAM producers.