RE: Germany Tax Credit13 Jul 2021 10:05
What’s driving ASX lithium shares higher?
Earlier this month, Forbes reported a potential “perpetual deficit” in lithium due to surging demand in electric vehicles (EV) and energy storage.
Forbes quoted bullish commentary from Credit Suisse, which had this to say: “Following production cuts (when the price crashed), the lithium supply glut has ended, and the market is now tightening as the EV revolution accelerates, supported by the global commitment to decarbonisation”.
Macquarie also provided its commentary in the report, saying: “We now forecast a wider market deficit for lithium in calendar 2021. The deficit is expected to grow in calendar 2022 and widen further in 2023 before some supply response starts to close the gap.”
Recent commentary out of Fastmarkets flags a similar supply tight narrative.
Fastmarkets reported that “lithium hydroxide prices in Asia remained firm, with suppliers reportedly struggling to meet demand while consumers prioritised the security of materials”.
The website quoted a producer as saying that everything needed to be settled before mid-June, “otherwise buyers can barely find anything on the spot market”.