China's EV market share in June reaches all-time high

China reported robust new energy vehicle sales in June, widening the electric vehicles' market share in the total vehicle sales segment to an all-time high of 41.1%, S&P Global Commodity Insights calculations based on data released by the China Association of Automobile Manufacturers showed July 10.

The China Association of Automobile Manufacturers, or CAAM, considers pure and hybrid electric vehicles as new energy vehicles.

China's EV sales reached 1.05 million units in June, up 9.8% on the month, according to CAAM data.

EV sales in June were higher than market expectations, mostly led by an increase in the buying interest from end-users after local governments announced several supportive policies to boost EV sales, industry sources said.

EV production reached 1 million units in June, 6.7% higher than the previous month, CAAM data showed.

China's EV output and sales in June registered a year-on-year increase of 28.1% and 30.1%, respectively. China's total EV output and sales reached 4.93 million units and 4.94 million units in the first half of 2024, up 30.1% and 32%, respectively.

Meanwhile, China's EV exports reached 86,000 units in June, marking a 13.2% decline from the previous month and posting a drop for three straight months, CAAM data showed. However, exports were still 10.3% higher from a year earlier.

With more countries such as the US and Europe imposing trade restrictions on Chinese EV exports, this could increase export costs for Chinese EV producers and add more challenges, industry sources said.

Meanwhile, China's output of power batteries and other batteries reached a total of 84.5 GWh in June, up 2.2% month on month and 28.7% higher year on year, according to data from the China Automobile Battery Innovation Alliance, or CABIA.

Power battery output is a key indicator of battery metals consumption.

Sales of power batteries and other batteries reached 92.2 GWh in June, up 51.2% from a year earlier and 18.4% higher from a month ago, CABIA data showed.

Nickel-cobalt-manganese material used by power batteries and other batteries totaled 36,000 mt in June, down 7.7% from a month ago, while lithium-iron-phosphate material consumption reached 151,000 mt, up 5.6% month on month.

Lithium salts prices

The outlook for the China lithium chemicals market remained bearish in the short term, in view of rising inventories due to abundant supply and sluggish demand, sources said.

Salt lake production levels continued to increase due to warmer weather while imports stayed elevated, adding to supply pressure in the market. Meanwhile, downstream demand remained soft.

Platts, part of S&P Global Commodity Insights, assessed battery-grade lithium carbonate at Yuan 89,500/mt ($12,301/mt) on a DDP China basis on July 10, down Yuan 8,500/mt on the month. The assessment reached Yuan 87,000/mt on July 1, the lowest level seen since April 2021.