Saturday, May 31, 2025

Latest

Lithium Prices Plunge 90% from 2022 Peak as Supply Outpaces Demand

Lithium prices have plummeted nearly 90% from their 2022 peak, as supply outpaces demand in the critical battery metal market, industry analysts report.

The price collapse has wiped out gains made during the 2021-2022 surge, despite rising electric vehicle adoption, particularly in China. Slowing EV sales outside China have further dampened demand.

Last week, unconfirmed reports that China’s Contemporary Amperex Technology (CATL) suspended production at one of its lithium mines sparked a modest market reaction. Lithium futures in China rose about 4%, while shares of global lithium miners surged.

Via Trading Economics

CATL, which did not confirm the suspension, said it was “making adjustments” to production. The mine represents approximately 5% of global supply, according to UBS.

Despite recent gains, lithium stocks remain significantly below their 2022 highs. Albemarle Corp (NYSE: ALB) has jumped 14% since the CATL reports, while Australia’s Pilbara Minerals (ASX: PLS) gained 19%.

Analysts caution against expectations of a strong rebound. JP Morgan reports lithium carbonate inventory in China at a record 130 kilotons. Goldman Sachs estimates next year’s supply could exceed demand by 57%.

UBS estimates that current lithium prices are already lower than CATL’s cash cost for production. However, as an integrated battery maker, CATL might have more tolerance for losses in one part of its business. Analysts suggest prices are unlikely to fall much further if global production is to remain economical.

Chinese lithium producers, with stronger cash positions compared to the 2018-2020 downturn, may continue expansion plans, potentially limiting price recovery.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

China Mulls Forcing US-Listed Companies to Surrender Data Management to 3rd Party Firms

Beijing is coming down with even tougher regulations on foreign exchange-listed companies, by proposing that...

Monday, August 23, 2021, 01:58:10 PM

China Threatens Retaliation Over Balloons

China has warned the US that it will retaliate over violations of its sovereignty, possibly...

Wednesday, February 15, 2023, 09:04:09 AM

Depositors Protesting Chinese Banks Freezing Their Accounts Met Violent Dispersal

Instead of withdrawing their money, depositors of major rural banks in the Chinese city of...

Monday, July 11, 2022, 03:01:00 PM

Raytheon CEO Argues Against Decoupling From China: “There Is No Alternative”

Western manufacturers face the complex task of reducing risks associated with their operations in China,...

Wednesday, June 21, 2023, 11:21:00 AM

Gold Climbs as China’s Central Bank Starts Buying Again

Gold prices rose on Monday after China’s central bank restarted its buying program following a...

Monday, December 9, 2024, 07:50:23 AM