ALB - Why Lithium Prices May Remain Lower For Longer
2024-07-18 15:42:03 ET
Summary
- Lithium demand forecasts predict a production shortfall, potentially leading to higher prices and share price appreciation for miners.
- This article focuses on the bear case, explaining why the recovery in lithium prices remains less certain than often claimed.
- Global lithium reserves are ample for current demand, Chinese supply is not price-sensitive, and the EV transition is happening more slowly than expected.
- Companies are actively seeking alternatives to lithium for batteries, and recycling may provide a solution to potential shortages.
One of the biggest investment themes this year has been physical infrastructure. Both the clean energy transition and the build-out of AI require vast new investments in energy storage and transport. Lithium has thus naturally attracted a lot of attention as a potential investment idea....
Why Lithium Prices May Remain Lower For Longer