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Goldman Sachs calls top for lithium, stocks drop

Emma Rapaport

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Shares in lithium miners in Australia and the US have fallen steeply.

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• Pilbara Minerals -17.46 per cent to $2.4
• Sayona Mining -11.36 per cent to 19.5¢
• Liontown Resources -20.5 to $1.125
• Core Lithium -17.2 to $1.15

The falls come after US investment bank Goldman Sachs warned of a “sharp correction” in the price of lithium, with the metal averaging under $US54,000 a ton this year, down from a spot price of over $US60,000. It will fall further to an average of just over $US16,000 in 2023, the Wall Street bank said.

Goldman Sachs said the price of three key battery metals – cobalt, lithium and nickel – will drop over the next two years after investors wanting exposure to the green-energy transition piled in too quickly.

“Investors are fully aware that battery metals will play a crucial role in the 21st century global economy,” Goldman analysts including Nicholas Snowdon and Aditi Rai said in a note on Sunday.

“Yet despite this exponential demand profile, we see the battery metals bull market as over for now.”

With Bloomberg.