As consolidation in the market is occurring around the major areas that may dictate the way the market expands in the direction, traders are keenly following up.
A recent report by analyst Paola Rojas revealed that the world consumes more lithium, which grew by an additional 23% in 2025, which proved that the underlying use is persistent. This consistent increase is an indication of long term industrial demand as opposed to temporary variations. To the market players is an affirmation that the larger cycle is still being underpinned by actual consumption.
Paola Rojas chart from X show The electric cars remained the leader, and unit-related demand increased by a margin of 20% in the same period.
This trend contributes to the current battery manufacture power and proves the direct correlation between the vehicle production and the use of lithium. Lithium demand is probably not going to die out as long as the EV manufacturing is going on.
But the greatest acceleration was caused by the storage of energy, in which case the consumption increased by 45%. This is an indication that grid storage is becoming a significant force of demand. Tradingwise, this diversifies the base of the purchasing interest and makes it less dependent on a specific sector.
On one hand, lithium carbonate is now trading in the range of about $19,900 per tonne up after plunging downwards early on the year at about of about $8,300 per tonne. This recovery is evidence of a significant change of mood. The market is not valuing extreme weakness, but instead holding significantly higher ground.
According to TradingEconomics Chart View,The turning point was made when the price cleared off at $13,900 per tonne and this caused a strong upward movement.
That breakout has paved the way to reach to the heights with ability of paying out $25,000 per tonne which is one of the most robust gains of the cycle. This stage was an indication of hostile stance and growing optimistic belief.
Following that surge, the market entered a retracement and settled into the $19,000 to $20,000 per tonne region. This pause reflects balance rather than collapse. Holding above $19,000 per tonne keeps the current structure intact and leaves room for further upside attempts.
On the other hand, the Global X Lithium and Battery Tech ETF is trading recently at around highs of about $75 as it has been on a steady upward trajectory since it was trading close to $50. This is an indication of long term exposure on capital lithium related stocks. This kind of action is normally congruent to long-term conviction as opposed to the short-term speculation.
The latest TradingView sessions depict a sideways movement on the band with consolidation between $70 and $75. Such a trend is an indication that the market is recapturing previous profits.
Holding above the higher level support at $70 is a good indication that the buyers are still in control of the bigger framework.
Momentum indicate a slight pause and not a reversal. MACD has relaxed and Chaikin Money Flow is at the level of 0.09 indicating further inflows. Such a combination show that the sector is stabilizing and traders are waiting to see a break higher to illustrate the next direction.
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