Lithium Related Media Articles, page-21181

I think you're missing the point, it is not that EV won't grow enough to require more consumption of lithium but the demand trajectory for both EV and lithium would be much less than originally projected, the bullish projection of which resulted in a flurry of pursuit of lithium mine production around the world, so over tine despite the cuts from existing producers which could shore up pricing in the short term, new supplies from developing mines would come onstream to balance it out ; the lower than anticipated demand against the higher than anticipated supply prevents the recovery of the lithium price to levels that previously justified higher valuations.

So it is not that lithium price and stock price won't recover, but that its recovery could be more painstaking and protracted, especially if we get a recession down the road, and then when more start up mines go bust and production curtailed sufficiently while demand recovers, will we see the next cycle of growth. In between now and when that happens, juxtaposed with a probable economic downturn, the industry could continue to face setbacks longer than market participants would now expect. And as usual, the longer we wait out to see how things unfold, the worse the outcome could get for lithium stock prices as interest wanes in the sector.

The bottoming process, as we saw in gold stocks, usually happens when speculative interest dies off in the junior end of the sector, which we haven't yet seen but showing signs. That said, if China introduces a large stimulus and a Biden doubling down to boost the EV sector to accelerate clean energy, then the prospect of rejuvenation is likely to boost the sector. But the Trump threat lurks as well.