Lithium carbonate price in China rose to 495,500 yuan/tonne in September, soaring 80% year-to-date and equaling the record-high close hit in March this year as surging demand coincided with lower supply. Data from the the Shanghai Metals Markets pointed to a 108% surge in carbonate imports in China, as the rebound in economic activity renewed demand for new energy vehicles. In the US, demand for electric vehicles is set to increase as the newly passed Inflation Reduction Act extends tax breaks for new electric vehicle purchases. On the supply side, the energy crisis in China brought by record-setting heat waves led multiple lithium producers in Sichuan to suspend operations, adding to the upside of soaring lithium costs in the near-term. Scarcity led auto manufacturers with large bets on battery electric vehicles to compete for long-term supply contracts, including Ford and Stellantis. Also, electric vehicle giant Tesla mulled building its own lithium refinery in Texas. Historically, Lithium reached an all time high of 500000 in March of 2022.