Jiangsu Lopal Tech Company, a Chinese producer of battery materials, has predicted short-term volatility in the lithium market as supply growth exceeds demand.

Chairman Shi Junfeng stated that lithium prices are expected to fluctuate between 65,000 yuan (US$9,000) and 85,000 yuan (US$12,000) per ton.

Despite low prices, Lopal Tech has resumed operations at its Jiangxi lithium refinery, which collaborates with CATL.

Currently, lithium prices are around 73,000 yuan (US$10,000) per ton in China, significantly lower than the nearly 600,000 yuan (US$83,000) peak seen less than three years ago.

Industry challenges include overcapacity and intense competition, with Shi Junfeng expecting medium-term lithium prices to stabilize around 100,000 yuan (US$14,000) per ton to support battery recycling and long-term market stability.