However, according to new statistics, the increasing demand for electric and hydrogen-electric vehicles as well as an increase in energy storage systems is expected to popularise lithium use and drive demand up to $2.5 million per ton by 2023. If the current demand trend continues, it is predicted that this figure will hit $1 million in 2023.
Steve Byrne of Bank of America slashed Albermarle’s price target to $161 because of supply concerns. Supply is likely to be limited as most projects in Australia and US are Greenfield Mines, not Brownfield Exploration. These projects are often undertaken by small miners, who may be facing capital constraints. This could cause further delays in the supply chain.
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In March, Liontown Resources (LTR), before the Albemarle investment, was trading at $1.52. China’s spot price for lithium fell 70% this week from its peak of $23.850 per metric ton since last November. The equity may be offered at the lower end.
Lithium stocks drop due to excess supply first appeared on LeapRate.