From the AFR today

Lithium prices tipped to surge by 40pc this year

Citigroup has declared the collapse in lithium prices is likely to be over, and prices should rebound by as much as 40 per cent by the end of the year as downstream producers start to restock and policy support in China boosts sales of electric vehicles.

Chinese lithium carbonate prices plunged around 70 per cent in just five months to a low of $US22,000 a tonne, but have since recovered to $US28,000 a tonne in the last few weeks. Citi attributed the rebound to improved market sentiment, demand from physical traders, recovering EV sales and lower inventories in the supply chain.

Citi has reiterated its bullish view on lithium into year end. New York Times

And the broker believes lithium’s recent rally has further to run, predicting Chinese carbonate prices will hit between $US35,000 and $US40,000 a tonne by the end of this year, representing 25 per cent to 40 per cent upside.

“We believe the battery supply chain destocking cycle in China is in its final phase and active restocking in the second half of 2023 is likely to support prices at higher levels,” analyst Shreyas Madabushi said.

The rebound in prices has also helped fuel a rally in lithium stocks.