GL1 Megathread, page-1373

The price of li has fallen by c.70% from its peak. I suspect there will be a slow rebound in its price in 2024 (& that of most Li explorer & developer stock SP's, also savaged).

The old & veritable maxim applies, re commodity prices: "The solution to low commodity prices, is low commodity prices" ie much of the expected new (& perhaps "old", planned supply- CXO is cutting its li production) supply will evaporate, as the new supply is not economic to produce.
With less supply available, the price of Li will, almost certainly, rise.

Pella Funds S. Glass 19.12.23 has also provided other, very detailed reasons below, in his factual analysis of why li prices should rebound in 2024.

"We believe that the poor performance can be explained by

1. deceleration in electric vehicle sales growth.

2. cathode companies (key lithium customers) drawing down their inventories (relative to sales) to the lowest levels since 2020.

The share price declines have materially improved the valuation metrics of many lithium companies. Meanwhile, we believe that EV sales are likely to continue growing strongly and cathode companies’ inventories will have to be rebuilt. If proven correct, these factors point to a drastic improvement in the lithium sector’s investment fundamentals.

This article provides background information into the lithium market, followed by the reasons we believe lithium demand is likely to materially exceed supply by 2025 (my emphases), and a brief discussion on why supply is likely to undershoot expectations. The demand-supply imbalance will push up the price of lithium and, with it, the share prices of lithium-related companies".

See Pella's full analysis in the link below
https://www.livewiremarkets.com/wires/why-we-believe-now-is-the-time-to-consider-investing-in-lithium-2023-12-19?utm_campaign=89217&utm_content=wrap_up_instant&utm_term=why-we-believe-no