https://sputnikglobe.com/20231203/who-will-capitalize-on-low-lithium-prices-1115352546.html
Who Will Capitalize on Low Lithium Prices?
Who Will Capitalize on Low Lithium Prices?
Sputnik International
The situation with booming lithium market may soon change significantly, Thomas W. Pauken II, geopolitical commentator and consultant on Asia-Pacific affairs, told Sputnik.
2023-12-03T09:52+0000
2023-12-03T09:52+0000
2023-12-03T10:18+0000
economy
us
china
lithium
prices
investment
markets
https://cdn1.img.sputnikglobe.com/img/07e7/01/1e/1106816226_0:0:2049:1153_1920x0_80_0_0_76bd065e87c3dec51d64a5f38fb66319.jpg
In 2024, average prices for battery grade lithium carbonate in China - the world's top consumer and largest producer of the metal - are expected to fall by more than 30% from current levels. Since November 2022, these prices have fallen from $84,500 per metric ton to $18,630 per metric ton, a decline of 77%.The developments come as General Motors, Honda, LG Energy Solution and other automakers and battery manufacturers put plans to expand electric vehicle (EV) production on hold as rising interest rates hamper demand.He stated that the buyers “would be the EV battery-makers, so this comes to an advantage, especially of the Chinese EV battery makers.”According to him, "if lithium prices go down [further], this would obviously be a big win for China."Commenting on Elon Musk’s recent claims that lithium refining is a "license to print money," the analyst noted that being a billionaire ''doesn't make you an investment genius.''He also touched on a possible scenario in which former US President Donald Trump is re-elected next year, which is sure to lead to lower lithium prices."I think what's going on, is that the traders are making judgment calls based on future actions. Peak prices hit last year, and now they're just going down," the analyst concluded.
https://sputnikglobe.com/20231129/electric-vehicle-makers-find-respite-in-falling-lithium-costs-1115284484.html
https://sputnikglobe.com/20230316/lack-of-mining-capacity-threatens-to-upend-global-lithium-race-1108482636.html
china
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
2023
Oleg Burunov
https://cdn1.img.sputnikglobe.com/img/07e4/09/0b/1080424846_0:0:2048:2048_100x100_80_0_0_3d7b461f8a98586fa3fe739930816aea.jpg
Oleg Burunov
https://cdn1.img.sputnikglobe.com/img/07e4/09/0b/1080424846_0:0:2048:2048_100x100_80_0_0_3d7b461f8a98586fa3fe739930816aea.jpg
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
Oleg Burunov
https://cdn1.img.sputnikglobe.com/img/07e4/09/0b/1080424846_0:0:2048:2048_100x100_80_0_0_3d7b461f8a98586fa3fe739930816aea.jpg
booming lithium market, low lithium prices, ilon musk's remarks on lithium prices, largest producer of lithium
booming lithium market, low lithium prices, ilon musk's remarks on lithium prices, largest producer of lithium
Who Will Capitalize on Low Lithium Prices?
09:52 GMT 03.12.2023 (Updated: 10:18 GMT 03.12.2023) The lithium market is experiencing a period of rapid growth, but this may soon change significantly, Thomas W. Pauken II, geopolitical commentator and consultant on Asia-Pacific affairs, told Sputnik.
In 2024, average prices for battery grade lithium carbonate in China - the world's top consumer and largest producer of the metal - are expected to fall by more than 30% from current levels. Since November 2022, these prices have fallen from $84,500 per metric ton to $18,630 per metric ton, a decline of 77%.
The developments come as General Motors, Honda, LG Energy Solution and other automakers and battery manufacturers put plans to expand electric vehicle (EV) production on hold as rising interest rates hamper demand.
29 November 2023, 17:53 GMT
"In reality, actually, lower lithium prices would make it cheaper for the manufacturers, who are the buyers of lithium. So this is actually an advantage for the buyer rather than the seller," Thomas W. Pauken II, geopolitical commentator and consultant on Asia-Pacific affairs, shared with Sputnik.
He stated that the buyers “would be the EV battery-makers, so this comes to an advantage, especially of the Chinese EV battery makers.”
"Most of all because they continue to really do a big push into EVs. But there's also talk that perhaps Biden will do some trade protection measures on China's EV batteries. If that happens, that will also cause lithium prices to go lower because the Chinese companies, who are connected to EVs cannot do any type of business in the US," Pauken II added.
According to him, "if lithium prices go down [further], this would obviously be a big win for China."
Commenting on Elon Musk’s recent claims that lithium refining is a "license to print money," the analyst noted that being a billionaire ''doesn't make you an investment genius.''
"So this statement by Elon Musk should not be taken as guarantees that the lithium market is booming. Everything in the markets go up and down. It is how markets work. If they don't go up and down, then we would have terrible inflation in our world and everything would get too expensive. We need up and down markets to create more balance between supply and demand," Pauken II stressed.
He also touched on a possible scenario in which former US President Donald Trump is re-elected next year, which is sure to lead to lower lithium prices.
"I think what's going on, is that the traders are making judgment calls based on future actions. Peak prices hit last year, and now they're just going down," the analyst concluded.
