Viral Shah
Southern Asia
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How the emerging BESS sector is shaping lithium demand
The rise in lithium prices in 2026 has led to increased cost pressures for BESS manufacturers and developers. Fastmarkets’ benchmark assessment of the lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea reached a year-to-date peak of $24.50-25.80 per kg on May 12, up by 212% from a recent low of $7.50-8.60 per kg in June 2025. In this feature, Fastmarkets explores the key talking points around the BESS market and its impact on lithium demand and prices.
CME lithium hydroxide contract sees first trades for 2028 contract months
The first two trades, covering a first-quarter 2028 strip, were brokered by Freight Investor Services (FIS), the company confirmed to Fastmarkets. “It’s great to see FIS further advance the battery metals market and enable the opening up of volume into Cal-28 for the Lithium Hydroxide contract,” Anna Chadwick, head of battery metals at broker FIS, told Fastmarkets.
Medium-voltage UPS at AI data centers a growing source of BESS LFP cell demand
Key takeaways: AI data centers are becoming a major new demand driver for battery storage. Fastmarkets forecasts AI-linked ESS demand could reach 300GWh by 2030, supported by rising electricity consumption and the need for grid-interactive power systems. Medium-voltage UPS systems are transforming data center power architecture.
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