Lithium Prices Haven’t Peaked Yet, But Expect Surprises

Fastmarkets’ William Adams: Lithium prices haven’t peaked yet, but expect surprisesYoutube

Lithium prices rebounded last year, with strong demand and good prospects for the electric vehicle sector, supporting automakers as they continue to look for ways to secure supply.

But after hitting all-time highs, prices have started to stabilize, with factors like new COVID-19 measures in China hitting the battery metal market.

At this year’s Fastmarkets Lithium Supply and Raw Materials conference, the Investing News Network (INN) spoke with William Adams of Fastmarkets to get his perspective on what’s happening in the lithium industry.

“What we are seeing is just a pause on the demand side due to lockdowns in China,” he said. “And I think it’s more that consumer demand has been constrained rather than receding.”

As lockdown measures ease, Adams expects lithium prices to rise.

“I don’t think we’ve seen the price peak yet,” he told INN at the event in Phoenix, Arizona. “We expect to see that towards the end of this year, or maybe the first quarter of next year.”

Fears that the market could revert to an oversupply situation have made a comeback in the lithium space as producers and newcomers announce expansion plans, restarts and new projects.

“When new supplies come in, each of these new production lines needs to be qualified,” the head of base metals and battery research said at the conference. “So that means that many potential consumers won’t take this material until they see this new production line running stably. And once they have that, they will take samples and qualify them.

Listen to the interview above to learn more about Adams’ thoughts on lithium, including price action and his near-term outlook for the market. You can also click here for INN’s full playlist of the event on YouTube.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, have no direct investment interests in any of the companies mentioned in this article.

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

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