Lithium Prices, New Supply and Lessons Learned

Lithium has seen ups and downs lately. After hitting historic highs in 2022, prices for the commodity fell from last November to April. Now the battery metal is on the rebound again, continuing a rally that began at the start of Q2.

Speaking with the Investing News Network at Fastmarkets’ latest Lithium Supply and Battery Raw Materials conference, Rodney Hooper of RK Equity said last year there was a greater deficit than expected as downstream players stocked up.

“Then we started this year with a bit of weakness in China with electric vehicle sales, but that’s come back as of May,” he said. “The economics of lithium are playing out as expected … we’ve come back to where I think is a fair position at the moment for the year.”

Commenting on pricing, Hooper said the downstream doesn’t seem to like anything higher than US$50,000 per metric ton, but this part of the market is not always in control.

“If we see a recovery in electric vehicle demand going up towards the end of the year, I think energy storage can add to that, and we could see something of a price squeeze or slightly higher prices towards the end of the year,” he said.

Hooper also shared his views on what’s ahead for lithium and lessons learned when investing in battery metals this past year.

“I think investors still need to be very cognizant of global macro factors,” he said.

Listen to the interview for more from Hooper on lithium in Africa and Canada, and what could derail a structural supply deficit. You can also click here for our recap of the Fastmarkets event.

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

Editorial Disclosure: 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.