Bullish for EVs: Battery grade lithium price decreased by 16% QoQ and 62% YoY to $12.3 per kg.
Before accounting for inflation, 3QTD 2024 marks a 13 quarter low (lowest since 2Q 2021).
Adjusted for inflation, 3QTD 2024 marks a 14 quarter low (lowest since 1Q 2021)
...yes what is good for EVs (lower lithium price) isn't good for lithium.
...EV growth would be at the expense of lithium. That's what I told you months ago and its true.
...lithium prices have to be low enough for battery prices to be low to allow EVs to be priced at or close to parity with ICE to enable mass adoption.
...which can only mean two things:
1. Lithium producers would have to be a low cost producer to survive
2. Lithium producers would have to increase their production throughput to increase revenues and profits
and those who can do that will be ok
....however the lithium valuation premium (especially ASX lithium majors) would need to be further reduced to reflect this new reality that will persist for some time yet.
