LTHM - 'High lithium prices here to stay' Citi says in hiking forecast to $60K/ton

Citigroup analysts raised their forecast for lithium prices to $60K/metric ton for battery-grade carbonate, on the back of higher electric vehicle production and sales expectations that result in tighter short-to-medium term market balances. Battery grade lithium carbonate prices reached an all-time high last year and broke through $40K barrier at the start of the year, according to Benchmark Mineral Intelligence. Lithium producers (NYSEARCA:LIT) sport broad gains in Wednesday's trading: ALB +3.6%, LTHM +3.7%, LAC +3.4%, SQM +2.6%. "There may not be sufficient inventory to allow the deficit we model for the lithium market during 2022, meaning extreme lithium pricing is likely to be required to defer and/or destroy demand," Citi said. Citi said it sees limited downside in prices over the coming year "as our higher frequency quarterly balances point to a rebalancing in the market only by H2 2023," adding that even its bull case for supply does not

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'High lithium prices here to stay,' Citi says in hiking forecast to $60K/ton