The lithium supply squeeze will push carbonate prices above $US40k.
Here’s why:In 2019, Moores said he was asked whether lithium prices in the next price surge would ever reach the highs of 2016.
“My response was this time it would be more aggressive,” he said in this tweet.
“Instead of the late 20s, prices in China would exceed $40,000/t.”
Here are three reasons why.
1.“This time there are more buyers than in 2016,” Moores says. “There are still not enough sellers: miners, refiners. Demand for lithium is outstripping the rate supply is growing by double. The wall of EV demand for lithium continued to build, esp 2026 and beyond.”
2. “Right now, the lithium industry is responding in real time, in many ways, and isn’t addressing a massive demand issue that we face towards the latter end of the decade,” Moores says. “For this massive investment would be needed or DLE [direct lithium extraction] breakthroughs to help close the supply demand gap.”
3. “Lithium carbonate price today in China is $28k tonne high end, mid-point $24k,” Moores says. “This is the top end of what we experienced 4/5 years ago and there’s a long way to go before this price surge runs out of steam … I don’t feel we are even halfway through yet.”
https://unauthorised investment advice/resources/high-voltage-the-lithium-supply-squeeze-will-push-carbonate-prices-above-us40k-heres-why/
stock head website article 12/10/21.
