“This stabilization is primarily due to a rapidly expanding global supply, which has already pushed the market into surplus,” Chowdhury said. “We expect no return to previous highs for lithium. Prices will remain below the peaks of 2022 and 2023 for at least five to 10 years.”
For this year, BMI forecasts mainland Chinese 99.5% lithium carbonate prices to average $15,500 per tonne, increasing to $20,000 per tonne in 2025. This starkly contrasts the over $72,000 per tonne average in 2022. Similarly, BMI predicts lithium hydroxide monohydrate (56.5% grade) to average $14,000 per tonne this year and $20,500 in 2025, down from about $70,000 per tonne in 2022.
The upshot of extended low lithium prices could be a boon for cost-saving methods and industry M&A, the analysts said. Juniors and developers may have to incorporate new technology, such as direct lithium extraction for brine projects, while the industry’s scores of…
