2023-05-30 18:54:23 ET
Major lithium producer Chile said it sees the battery metal remaining in tight supply this year and next before switching to surplus in 2025.
The government's Cochilco agency said Tuesday it forecast demand growth for lithium would average more than 16% annually over the next 12 years as the world increasingly shifts to electric vehicles, with the market swinging into a surplus during 2025-29 and returning to a deficit in the early 2030s.
While strong demand has led to price spikes in recent years, which in turn led to increased supply activity, it will take a few more years before that supply can come online, Cochiclo said.
Separately, Chile hopes to start negotiations soon with Albemarle ( NYSE: ALB ) as part of the government's plan to gain majority control of lithium mining projects, Mining Minister Marcela Hernando said Tuesday.
The minister told Reuters the government would respect Albemarle's ( ALB ) current contract which ends in 2043.
State-owned copper miner Codelco recently started talks with SQM ( NYSE: SQM ) about its contract with the government which expires in 2030.
ETF: ( NYSEARCA: LIT )
More on lithium:
- LIT: Invest In EV Trend, While Eliminating Company-Specific Risk
- If You Believe In Lithium Battery Growth, Albemarle Is A Must Own
- SQM vs. Albemarle: Which Is The better Buy?
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Chile sees lithium swinging into surplus by 2025 as new supply comes online