April 13, 2021 11:29amASX lithium shares are the soup du jour with investors and the sector just got a big upgrade from a top broker.The analysts at Macquarie Group Ltd upgraded their lithium price forecasts by between 30% and 100% for the next four years after they reassessed the outlook for the commodity.Their very bullish take on the critical battery ingredient is predicated on the belief that global supply will fall short of demand.Lithium supply shortfall looming large“Our bullish EV [electric vehicle] demand outlook sees the lithium market move to deficit in 2022 with material shortages emerging from 2025,” said Macquarie.“The rise in China spot prices has started to translate through to a recovery in regional lithium prices.“Despite the strong recovery, we note that all regional prices are still down from the beginning of 2020, except for spodumene and Asia lithium carbonate prices.”The broker believes this signals further upside to regional prices in the coming months.ASX lithium shares upgraded to “buy”Significantly for ASX investors, the upward revision in the lithium forecast prompted Macquarie to upgrade its recommendation on ASX shares.
AGY Price at posting:
9.1¢ Sentiment: Buy Disclosure: Held
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