The Financial Times (July 2023) reports a sustained rise in lithium prices, driven by the increasing adoption of electric vehicles in Europe, Asia, and North America. Companies like CATL and Panasonic are competing to secure long-term lithium supplies, leading to the signing of forward purchase contracts with mining producers.
This situation offers investors the opportunity to participate in mining projects in the expansion or advanced exploration phases, benefiting from the appreciation of the mineral. However, it is important to consider the possibility of supply overhang cycles in the medium term, as new deposits come into operation, which could moderate prices.
The lithium boom reflects the importance of this raw material in the global energy transition but also raises questions about the sustainability of demand and the ability of producers to adapt to changes in battery technology, which could evolve toward solutions less dependent on lithium.
Source:
• Financial Times, “Global Lithium Prices Soar as EV Market Continues to Expand,” July 2023.
