News: AKE UPDATE 1-Allkem sees low lithium prices extending over near term - chair

(Adds quotes and comment from the chairman in paragraphs 2-4)

SYDNEY, Dec 7 (Reuters) - Allkem Ltd (AKE) Chairman Peter Coleman said on Thursday he sees current low lithium prices extending for the near term.

Lithium prices overshot last year driven by China but this year fresh supply, including from Africa, has led to a collapse in prices, Coleman said at an event in Melbourne.

"That's natural. You get a price signal in the market and everyone runs off to the bank and their investors and says its time to build a mine," he said.

"That price signal arrived a few years ago. Now we have to work that (excess supply) out of the market. We're going to be here for a little while."

Lithium prices have fallen amid slowing demand growth for electric vehicles which has led to a price war among makers in China and which may remain sluggish for years.