CGrowth Capital Inc (CGRA)

[pepeoil]

From Oilprice.com

The lithium price crash over the past year is leading to a slew of profit warnings and project halts from the world’s biggest miners of the battery metal.

After warnings of project reviews and moves to preserve cash from U.S. and Australian lithium mining firms, some of China’s biggest miners also warned this week of a plunge in profits and potential asset write-downs.

As prices of lithium plummeted by more than 80% between January 2023 and January 2024, dragged down by rising supply and weakening growth in EV uptake and demand from battery producers, lithium miners from America to China are struggling to keep profitability levels and warn the near future could be more uncertain and volatile in terms of sales prices and net incomes.

The long-term prospects of the global EV market continue to be solid. Still, the current lithium oversupply is expected to persist in the short and medium terms until some point at the end of this decade, analysts say.

Faced with supply outstripping demand, lithium producers are now scrambling for options and warning the market of much lower profits and asset impairment tests.