In China, the market price of battery-grade lithium carbonate experienced a further decline during the past week from CNY 515,000 ($76,700.87)/tonne to CNY 505,600/t, according to 100ppi.com's data. 

The data indicates a decline of about 3.70% over the past two weeks, Kallanish notes. According to some other sources, the market price has already dropped below CNY 500,000/t. 

Industry insiders believe that the supply and demand of lithium carbonate is likely to remain in a tight balance in the short run, and the price reduction of lithium carbonate has not yet come to an end. 

Chen Li, chief economist at Chuancai Securities, says: "The consecutive decline in lithium carbonate price is mainly due to the impact of demand-side factors such as the decline in subsidies for new energy vehicles, reflecting the market's short-term concerns about weakening terminal demand."

He thinks the reduced lithium carbonate price, as well as the decline of other costs of lithium batteries, such as the processing fee for cathode materials and the costs for anode materials and electrolyte, will help alleviate the cost burden of the industry. Corporate profit margins will improve, and there will be more room for independent prices, which is expected to stimulate demand for NEVs.

CCMN.com thinks sentiment is relatively low at the beginning of 2023. 

"The price of lithium carbonate in the short term may continue to be lowered to a rational level. With the downstream inventory reduction, there may be a demand for inventory replenishment from February to March, and the price of lithium carbonate may stop falling and stabilise, or rebound in shock."