Weaker smelting activity in China was mainly behind the lackluster readings.

Several companies are building refineries in Australia that would turn locally-mined lithium ore into battery-grade chemicals.

"It's clear we will have lower demand and potentially lower prices into the latter part of this year," says Bank of America.

Lithium demand is forecast to almost triple by mid-decade from last year’s level, BloombergNEF said in a July report.

Iron ore is managing to steer a fairly straight course despite the headwinds and crosswinds being thrown about by both the Chinese and global economies, writes Andy Home.

Overall Chinese iron ore demand may remain subdued in coming months, especially if Beijing sticks to its zero-COVID policy, analysts said.

Based on data from Global Energy Monitor, China had 559 million tonnes of proposed new coal mines at the start of the year.

Construction of the project will take up to three years, CATL said.