Lithium prices have plunged by 75% this year and the rout seems “far from over”, say Yvonne Yue Li and Annie Lee at Bloomberg. The white-coloured metal is a key ingredient in lithium-ion batteries. Excitement about demand for these batteries from electric vehicles (EVs) drove a huge rally during COVID-19. The price of Chinese lithium carbonate leapt by 1,400% between late 2020 and November 2022. But over the past year prices have receded amid signs of a glut.
Shares in US-listed Albemarle, the world’s biggest lithium miner, have plunged by more than 50% in a year. It mines lithium in Chile, Australia and the US. After mining, most of the metal is processed in China, making Chinese lithium prices the industry benchmark.
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UBS analysts expect the global EV rollout to be slower than previously expected, says Étienne Goetz in Les Echos. EVs now look likely to represent just 18% of vehicle sales worldwide in 2024, down from forecasts of 20% previously. Come 2030, that share will be 47%, less than the 54% previously expected.
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