Lithium’s low price doesn’t justify new investments in plants for the battery metal, a top Albemarle executive says.
The current price of the key battery ingredient is “concerning” and investors shouldn’t put money into lithium facilities at these market levels, Eric Norris, president of energy storage, said at an industry conference in Las Vegas on Tuesday,
Lithium prices weakened further this month after a temporary rebound, with inventories piling up as electric vehicle demand signals stay gloomy.
Global pricing for the lithium market should be more transparent and Albemarle, the world’s top producer of the metal, is doing its part by hosting more than a dozen auctions so far, Mr Norris said.
Lithium’s long-term demand prospects remain intact as demand from electric vehicles is expected to grow strongly, Mr Norris said.
At Albemarle’s latest lithium carbonate auction on June 19, the winning bid was down 6.9 per cent from the previous sale on June 5.
The declines follow a plunge of more than 80 per cent in 2023 due to a glut and slowing demand growth.
Shares of Albemarle have slumped 23 per cent so far in June, taking its year-to-date loss to 34 per cent as of Friday’s close.
Bloomberg.