Lithium prices aren’t slowing – at least, not any time soon.
As OilPrice.com reported, “Lithium prices have nearly doubled in 2022 amid [an] insane commodity rally.” And that’s after those same lithium prices nearly quadrupled in 2021,” adding that, “lithium producers have been caught flat-footed again, ill-prepared to meet the current even stronger demand surge fueled by the global energy transition and EV revolution.”
If you think lithium prices are coming down soon, don’t count on it.
According to the CEO of the International Council of Metals and Mineral Mining, Rohitesh Dhawan, “We can see quite a large mismatch between demand and supply. We currently produce around 400,000 tonnes of lithium annually. By 2030, that’s likely to (need to) jump to around two million tonnes,” adding, “At the moment about half of global lithium demand comes from the electric vehicle market… by 2030, 80% of global lithium demand will come from the electric vehicle market because we need to electrify our transport fleet that quickly.”
That’s why lithium stocks have been as explosive as they’ve been.
Look at Lithium Americas (LAC), for example. Over the last few days, LAC is up about $5 on growing demand. It’s also up on news it’s nearing production at its Thacker Pass lithium facility.
Or look at Standard Lithium (SLI), which is up about $1.20 in days. There’s also Albemarle Corporation (ALB), which was up about $7 today alone.
With lithium, supply cannot keep up with demand – and it may not be able to for quite some time. That means prices are likely to move aggressively higher, taking lithium stocks along for the ride.
There’s just too much demand with green energy plans moving forward.
“Electric vehicle market accounts for almost 80% of lithium-ion battery demand and high oil prices are supporting more markets to roll out zero-emission transportation policies, causing demand for lithium-ion battery to skyrocket,” Wood Mackenzie consultant Jiayue Zheng said, as quoted by US News & World Report.
Lithium stocks have buy opportunity written all over them.