Lithium price contracts in China have collapsed during the current trading window as market participants reduce their exposure to the battery metal. These futures shed 25% of their value in September, falling as investors grew concerned that appetite for electric vehicle batteries is weakening.

The downturn is driven by fears that battery demand is no longer keeping pace with production. This monthly decline in valuation highlights a shift in sentiment toward minerals essential for energy storage, pummeling the price of the asset throughout the month.