RE: US$8,575/t for 6.0% Spod. Con. !!!17 Nov 2022 14:04
Admittingly to forecast the price trend of Li is not an easy task..
I have not read the full report from GS forecasting peak Li prices, I am sure soon or later they are going to get it right....But more interestingly would be useful to know at what level Li price would settle, for the mid long term. lol
IMO there is also to make a distinction between spodumene and battery grade Li, and their future price trend.
Bottle necks can happen in any of the chain production from mined Li to battery grade Li. This would affect the price at any stage of the Li processing.....
Current status in general is that Australia produces the spod and China processes it to battery grade.
In a way prices are controlled by those 2 Countries at these two different stages, but if you take a look at the difficulty to explore and find a decent amount of Li resources to be mined, including the time needed for this to happen, is only right to see a trend where spod price would increase faster than battery grade Li.
With this scenario we could witness the eventual correction in Li prices affecting more battery grade Li than 6% spod.
Finally another thing to take in consideration is at what price level would be convenient, for the many countries and car maker to start buy battery grade Li for stockage, for future use.....