ASX Today, page-42959

Disappointing partial retreat in Lithium price, but not all that surprising I guess, Lot of interested parties in not bidding it up / chasing the rally too hard.

Personaly I think what will drive it (beyond any short-term volatility) will be higher-cost supply dropping out of the market (in NET terms, obviously LTR adding to supply, but likely lot more of the higher cost African & Chinese supply to drop out as seriously loss making at current pricing). Speed of the adjustment all depends on how badly China wants to subsidise loss-making production to achieve other strategic goals (give more free-kicks to it's EV Battery producers & support overall EV makers). They are obviously incredibly opaque and won't broadcast intentions - supply will simply quietly drop away sooner or later, when losses outweigh potential benefits to CCP's agenda. Eventually whatever they do will likely be overwhelmed by overall growth & demand in the global EV markets, and limits to economic African & Chinese supply. This mega-trend is unlikely to abate, and will eventually carry Lithium price by the sheer size of global demand & lack of timely replacement lithium supply (very few Lithium producers today will want to expand production unless they're right down the cost curve).

However I still personally believe the LTR bottom is in, and all players in the market have been put on notice of just how quickly Lithium sentiment could change. And those shorting the Lithium sector on notice that a change in sentiment (whatever the cause) could quickly re-rate the sector, despite their best efforts.

Still a happy holder.