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Unsustainably Low Lithium Prices Set the Stage for the Next Supply Crunch
By Tsvetana Paraskova - Feb 18, 2024, 4:00 PM CST

Albemarle: The crash in lithium prices over the past year is holding back reinvestment in new supply.
As miners accelerated lithium production in 2022, the market swung from a supply deficit in 2022 to a surplus in 2023.
Lithium demand is expected to grow in the long term, but there will be a period of glut and low oil prices, which some analysts see persisting through 2025-2026

While major lithium suppliers continue to see a surge in long-term demand as the energy transition gathers momentum, the current low price environment is "unstainable," Kent Masters, Albemarle's chairman, president, and chief executive officer, said on the company's earnings call this week.

"For us to kind of reaccelerate, if you will, we'll need to get a better view of what pricing is and the long-term view of that as well. So, we think that the prices today are unsustainable. They're below operating cash levels of some assets that are currently operating. And they're definitely below reinvestment levels," Masters told analysts after Albemarle reported better-than-expected revenues and earnings for 2023.

https://oilprice.com/Energy/Energy-General/Unsustainably-Low-Lithium-Prices-Set-the-Stage-for-the-Next-Supply-Crunch.html