Just over a year ago, lithium prices were sitting at nearly $80,000 a ton in December 2022.
Lithium sellers such as Ganfeng Lithium, the Albemarle Corporation, and others were so swamped with orders they were holding auctions, which routinely pushed prices upward.
Then, the bubble burst. In one year, the cost of lithium has dropped a staggering 80%. Lithium prices currently hover at approximately $13600 a ton as of December 18th 2023.
At first glance, this may seem unremarkable. Commodities fluctuate all the time, and over-investment in production is hardly a unique story. What separates lithium, and what makes this situation so dangerous, is the intense geopolitical competition lithium is subject to, the regulatory environment lithium interfaces with, and lithium’s role in combating climate change.
Perhaps this helps lowering EV pricing.
I’ve never have invested in raw material-commodity stocks. Much too volatile for me.YMMV