2024-02-19 10:06:47 ET
Summary
- Lithium and the EV metals miners are currently in a severe bear market, leading to cost-cutting and some mine closures or expansion delays, thereby reducing future supply.
- The demand for EV metals is expected to skyrocket over the next decade, with only a small percentage of the global fleet currently electrified.
- Several indicators are pointing to a lithium bottom forming. We will only know after the fact when we look back.
China spot lithium carbonate prices have this week bounced only very slightly from the bottom of CNY 95,500 to CNY 97,500
China lithium carbonate spot prices have fallen ~82% from their 2022 high and are now well below the marginal cost of production. This is resulting in severe cost cutting and several mines going into care and maintenance, which over time reduces supply....
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For further details see:
Are We At The Lithium Price Bottom Yet?