Lithium: Signs of cycle troughing

Global Mining Research

The last 12 months have marked a complete collapse in lithium pricing from all-time highs. The commodity is marked by short and sharp cycles (see graph) and David Radclyffe sees evidence that investors should increase exposure: product prices are stabilising, production curtailment is underway, EV demand growth is continuing, and seniors are raising equity (like in 2021). Low prices should make Boards more cautious when it comes to adding new capacity. Having been underweight for some time, David now sees opportunity in lithium equities with preferred stocks including Pilbara Minerals and IGO.

- 05 April, 2024