The United States lithium hydroxide segment demonstrated significant increases in pricing in January 2026 because of restricted amounts of feedstock, elevated cost of imports, and robust demand for electric vehicles (EVs). Though still dependent on Australia and Canada for spodumene, restrictions placed on importing activity from China have caused the availability of lithium hydroxide from that area to dwindle. Very few converters have managed to conduct trade with suppliers from other regions, thus creating heightened competition for existing stocks. EVs represented a major driving force for demand for EV batteries and high-purity lithium hydroxide. The number of EVs sold in the United States reached over 1.6M units in 2024. Increased EV sales, combined with relevant policy support and a rapidly growing domestic battery manufacturing industry, continue to be bullish drivers in the market.
