As of today, the US now has placed a 65% tariff on China sales of Lithium Carbonate and of Lithium Hydroxide. This will increase to 84% on Jan. 1 2026.
Putting aside that I am not a big fan of this whole tariff ideology, and strictly thinking about what this could mean to the price of lithium, I feel like it will be actually good.
My thought process is that most if not all lithium spodumene contracts are based in one way or another to the price of lithium chemicals (carbonate and hydroxide). If the reference price that is used is 65% higher for a portion of all lithium sales, this should start making lithium contract prices go up as they renew. This should effect all lithium contracts, not just those with offtake agreements with US companies IMO. Thoughts?
SYA Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
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