UBS Lithium report for your comments consideration.8 Nov 2022 10:27
UBS View: Lithium prices so far immune to macro weakness
Lithium prices continue to make all-time highs with spodumene, carbonate & hydroxide
prices up 243%, 124% and 152% YTD, respectively, despite the obvious headwinds
(i.e. COVID in China, EU EV sales disappointing and inflationary/monetary policy
factors). Industry feedback suggests OEMs continue to look past near-term weakness in
order to secure supply for the 24/25e EV sales targets. Increasingly we see
corporates' pricing expectations at US$30-40,000/t for the next 5 years and a
long term of US$20,000/t. This is well above our current price deck. We remain
positive on the structural thematic and lithium sector, but note we are starting to
struggle for valuation support on our current price deck.