KZR - As Oversupply Deflates Lithium Bubble IPO Market Keeps In High Spirits | Benzinga
The lithium market is facing persistent turmoil as spot prices have continuously declined for more than a year.
Supply shortages and speculation caused a lithium bubble in 2022, with spot prices reaching CNY 600,000 ($84,400)/ton. However, increased production and subdued Chinese demand caused the bubble to burst, with prices returning below CNY 100,000 ($14,000)/ton — levels not seen since July 2021.
Yet, the supply pressures are persisting. Chile, boasting the world’s largest reserves of lithium, is gearing up to open new extraction areas.
Bloomberg reported major players in the global battery supply chain, including Tianqi Lithium, LG Energy Solution, and French miner Eramet have engaged in discussions with Chilean authorities regarding the government’s public-private model for lithium. The country’s new lithium policy, led by President Gabriel Boric, involves the state taking a controlling ...