Macquarie has upgraded its lithium price outlook to reflect further tightening of the market fundamentals and the emergence of a spot market for spodumene and a forward market for lithium carbonate.
"Electric vehicle sales and underlying lithium demand remains strong and given the lack of supply response we continue to see the lithium market in deficit," the broker says.
"The emerging spot market has provided a key positive catalyst for lithium prices, which were already rising due to the positive market fundamentals.
We now expect spot lithium prices to approach previous peaks in the next
six months and upgrade our price outlook in the short and medium term. "
