One big positive of the recent lithium price decline is cheaper batteries and that has already led to cheaper EVs. That trend should continue as long as lithium prices stay lower. More people will be able to afford EVs. That should see EV demand growth accelerate again. At the same time, lower lithium prices might slow development of some projects that were planned for the next year or two. The demand supply balance and forecasts could backflip again just as quickly as they did recently. In the meantime we should see more EVs hit our roads more quickly and that's a positive. Also, the more that battery an EV production capacity increases, the cheaper EVs should become overall (not just looking at the price of lithium). As EVs become more and more mainstream, uptake should accelerate further. Adding to this will be the new battery technology from companies like CATL that is just starting to see new EVs with much greater range hit the market with most of those new longer range models coming into the market next year. That too should drive more demand for EVs. This is a much smaller market than iron ore or copper so supply demand balance will swing sharply in both directions much more aggressively than other markets. That's what we have seen over the last five years and I don't see why that would change any time soon. I think the wild volatility in lithium prices will remain for years but I also expect EV sales to grow exponentially for many years.
