How high could prices go? We’ve seen in other cycles, and other materials, what happens when we enter a secular demand cycle with weak supply response; substantial price appreciation. There will be pressure on battery/cathode/anode producers to adopt quarterly rather than annual raw material price contracts and then potentially eventually monthly price contracts. We saw the same thing in iron ore and coal in the China supercycle event.
You might be right Arnuad : Lithium Prices Could Triple As EV Production Soars https://oilprice.com/Energy/Energy-General/Lithium-Prices-Could-Triple-As-EV-Production-Soars.html From previous post that is $48,000 a tonne , There will be a peak no one has imagined barr Myself Arnaud , and they call me a ramper , much preferred to be a futurist . Could you imagine that 150,000 tonnes of Li at $50k p/tonne , a whopping , that is , $20 a share profit for our half , based on todays share quantity .
That scenario would push spodumene prices to above $720 a tonne, the bank said. Of the two main processed forms of the metal, lithium carbonate, is tipped to remain above its “incentive” price of $13,000 per tonne, while lithium hydroxide is expected to sit comfortably above $16,000 a tonne. and our pfs is based on $12,000 a tonne just a lazy $108 million more profit https://www.mining.com/macquarie-joins-peers-on-bullish-lithium-prices-outlook/
conversation starter : Uranium price chart , Lithium unchartered in real history , unprecedented supply need to world production capacities both now and future. Uranium went from $34 a pound to $134 per pound . You betya where will the dice fall for Li price in the near future , no chance it will stay at current pricing over the next couple of years . https://www.cameco.com/invest/markets/uranium-price
Dear readers, 174 billion reasons to invest in lithium! We previously reported that the US government will invest $ 174 billion in electric vehicles through the infrastructure plan by 2030. No wonder, around 30 years after its invention, the lithium-ion battery is the energy storage device of the hour. Almost every new electric car worldwide today uses lithium-ion batteries, which have steadily increased in performance since their invention in 1990. The potential has still not been exhausted, as several manufacturers recently noticed. Regardless, lithium prices continued to rise over the past month: 99.5% lithium carbonate China spot prices are up 6.42%. Lithium hydroxide prices rose 8.09%. Spodumene (6% min) rates rose 11.96% last month. Benchmark mineral Intelligence reported on lithium carbonate prices of 11,700 US dollars / t (technical grade) to 12,625 dollars (battery grade) , and lithium prices of 9,625 US dollars / t , and for spodumene 6% was no number given (for January it was 415 US dollars / t , experts assume that the price is now 510 US dollars / t ). Source: fastmarkets.com The prices for lithium carbonate in battery quality (Benchmark Lithium Carbonate, Battery Grade, EXW China, =99.5% Li2CO3) rose by 68% in the first two months of 2021 in China due to the high demand for batteries. China's lithium carbonate production totaled 17,720 million tons in March 2021 , an increase of 49.8% from the previous month and 33.6% from the previous year . The rise was mainly driven by Jiangxi and Qinghai. A headline from the last few days is likely to keep prices rising in the second quarter: Possible supply gap driving lithium prices? Chile closes borders and tightens lockdown! The lockdown of the entire country in Chile will result in delays in shipping schedules affecting 20% ??-25% of total Chinese lithium carbonate supplies in May-June , and there is guaranteed to be a supply gap. Price drivers are also the lithium market news from March, here are some headlines: UBS predicts that lithium demand will have increased twelve-fold from 400 million US years in 2021 to 2030. VW invests 100 million in battery manufacturer Quantumscape Investors see "gold rush on steroids" for green battery metals Lithium from Argentina - BMW secures raw material for electric cars