External News & Commentary, page-1037

We all need some lithium

By Colin Kruger

From AGE Business section today....

While iron ore is down in the dumps analysts reminded investors of the bright future ahead for greener ores like lithium. Unlike iron ore, it was not held captive by Chinese demand, a COVID-blighted rival in Brazil, and a flood of supply coming online from Africa at some point.

Macquarie Equities said there is no change to the outlook for supply deficits as far as the eye can see for lithium with the booming e-vehicle sales and underlying demand not being matched by a supply response.

Australia’s lithium miners are well-placed for the growing shortage of the ore. CREDIT:KIRSTEN BURGHARD

“We now expect spot lithium prices to approach previous peaks in the next six months and upgrade our price outlook in the short and medium term,” Macquarie said.

It noted that lithium production rates had remained largely unchanged from the key producers despite the strong rise in lithium prices.

Macquarie said the local beneficiaries included ASX-listed Orocobre, Mineral Resources, IGO Ltd and Pilbara Minerals.