A lot of lithium stocks have been sold and shorted because of a forecast lithium surplus for 2024 and 2025. After that, the forecast is for a deficit to grow each year for the foreseeable future. That should make higher quality lithium stocks attractive long term investments but traders, including instos will focus on the near term with weaker lithium prices perhaps for the next two years, so they sell and/or short for now with the aim to buy back lower. If nothing changes, I'd be looking to accumulate a few maybe from next year. If others think like that, it means less support now and potentially lower prices for some time. As has been discussed here, I'm not sure if the short term surplus/lithium price correction, would affect interest in a quality, long term asset like ours. Codelco's offer for LPI shows the potential for a good price for our asset despite the current correction.
