Lithium producer and miner shares have continued their downward trajectory, in line with falling spot prices of lithium carbonate in China.

Shares in MP Materials fell 4.5% while Lithium America slid down 3.3% and Piedmont Lithium experienced a drop of approximately 3%.

According to data from Refinitiv, lithium carbonate spot prices, 99.5% Li2CO3 min battery grade for China, Japan and Korea, have remained consistent at $35 per kilogram since their assessment on Monday.

Market conditions are believed to be easing due to new supply additions, based on an analysis by National Australia Bank’s commodities research.

Other firms, Sigma Lithium and Livent have also seen share price decreases of 2.1% and 2.5% respectively.

Shanghai Metals Markets reported the average lithium carbonate price (99.5% battery grade) to be $32,605 per metric ton.

The poor performance can be attributed to low demand during the weak season and ample raw materials inventory among cathode producers, resulting in no rush to restock, as per insights shared by Shanghai Metals Market.

Additionally, Chinese industrial output and retail sales data indicated unexpected slowdowns earlier in the session.

MP Materials (ASX:MP) is a leading producer of lithium used in manufacturing batteries.

MP Materials (ASX:MP) specialises in the extraction, production and supply of rare earth materials.