Expect Lithium Prices to Remain High in 2023

Daniel Jimenez: Expect Lithium Prices to Remain High in 2023youtu.be

After a year where lithium prices remained at high levels, 2023 may bring another year of gains.

“The price levels lithium reached were probably something I personally did not imagine that would happen in 2022, and it happened,” said Daniel Jimenez of iLi Markets. “At the end of the day, the price level is what end users were willing to pay.”

Jimenez, who previously worked for top lithium producer SQM (NYSE:SQM), told the Investing News Network that the other surprise in 2022 was the tremendous growth in electric vehicle (EV) sales in China.

“And on the other hand, a disappointment on what happened in EV sales in Europe. Where were those sales? They have been fairly flat,” he said. “They have grown, but not at the spectacular rates that China has, or even the US.”

Next year, Jimenez is expecting demand for EVs to grow at similar levels to 2022.

“The question is, will the supply be there? And when you look roughly at the increase of supply in the market next year, where will that be coming from? Well, it will be coming mostly from incumbents,” he said.

“Therefore, I would foresee prices to remain at high levels. And high levels to me means anything above (US$40,000 per tonne); it’s already extremely high. It’s very profitable for any producing asset.”

For the non-executive director of Galan Lithium (ASX:GLN,OTC Pink:GLNLF), money is not the main barrier for developing lithium projects. Jimenez believes the main constraints are the resource, the know-how and the permitting. “But permitting is the only thing where governments can really help quickly, and that’s where governments in Europe and North America, if they really want this electromobility to replace internal combustion engine vehicles, that’s where they need to support the industry,” he said.

Jimenez also shared what he expects to see next year in lithium, and what trends could impact the space going forward. Listen to the interview above to hear more of his thoughts.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Galan Lithium is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.