Oct. 24 at 2:06 PM
Rothschild & Co said the lithium market has likely hit its cyclical bottom after a three-year supply glut and expects prices to rise significantly as EV and battery storage demand outpaces new supply later this decade.
The firm said current lithium prices are “unsustainably cheap,” too low to justify new mine investments or expansions, and will likely need to double by the end of the decade for new projects to be viable.
Rothschild projects lithium demand to grow at a 19% annual rate through 2030, driven by EV batteries and grid storage, but noted that much of the planned capacity still awaits final investment decisions, which could delay supply growth. A shortage could emerge as early as 2026, with prices reacting before decade’s end.
Analysts initiated coverage on Albemarle with a Buy rating, citing its strong spodumene exposure and limited Chilean royalty risk, and on SQM with a Neutral rating due to high royalties and restricted spodumene output.
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