The fall in lithium prices comes as a surprise to many. But the megatrends of e-mobility and renewable energies continue.
Lithium has become extremely cheap this year. One wonders how this is possible given the growing penetration of electric vehicles. And after all, renewable energies also need electricity storage, i.e. lithium-ion batteries. The search for lithium, the exploration phase and mine construction take time and consume a lot of capital. Inflation and interest rates were high and even if both are now going down, a new balance sometimes has to be found between producers and consumers. Many countries have reduced their subsidies for e-mobility. Long-term investments in the lithium sector have therefore been scaled back in some cases. Nevertheless, it should be worthwhile for investors to bet on trends, perhaps especially in such a phase. The use of fossil fuels will decline and, incidentally, they have also become more expensive. According to estimates, the proportion of battery-powered vehicles in industrialized countries is set to grow to 25 percent in the next seven years. That would be around ten times as much as today.
The consulting firm Benchmark Mineral Intelligence also assumes that there will not be a supply surplus, which has caused lithium prices to fall this year, until 2028. Now could be a particularly good time to invest in lithium stocks with a view to the future. The well-positioned lithium companies US Critical or Century Lithium could be considered here.
In Nevada, Montana and Idaho, U.S. Critical Metals - https://www.commodity-tv.com/ondemand/companies/profil/us-critical-metals-corp/ - has projects with lithium, cobalt and rare earths - promising raw materials in the battery metals sector.
Century Lithium - https://www.commodity-tv.com/ondemand/companies/profil/century-lithium-corp/ - owns the Clayton Valley Lithium Project in Nevada. The pilot plant delivers high-purity lithium carbonate products and does so consistently.
Current company information and press releases from Century Lithium (- https://www.resource-capital.ch/en/companies/century-lithium-corp/ -) and U.S. Critical Metals (- https://www.resource-capital.ch/en/companies/us-critical-metals-corp/ -).
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