Count on Lithium Costs to Stay Excessive in 2023

Daniel Jimenez: Count on Lithium Costs to Stay Excessive in 2023youtu.be

After a yr the place lithium costs remained at excessive ranges, 2023 might deliver one other yr of beneficial properties.

“The value ranges lithium reached had been most likely one thing I personally didn’t think about that might occur in 2022, and it occurred,” mentioned Daniel Jimenez of iLi Markets. “On the finish of the day, the worth stage is what finish customers had been prepared to pay.”

Jimenez, who beforehand labored for high lithium producer SQM (NYSE:SQM), informed the Investing Information Community that the opposite shock in 2022 was the super progress in electrical automobile (EV) gross sales in China.

“And then again, a disappointment on what occurred in EV gross sales in Europe. The place had been these gross sales? They’ve been pretty flat,” he mentioned. “They’ve grown, however not on the spectacular charges that China has, and even the US.”

Subsequent yr, Jimenez is anticipating demand for EVs to develop at comparable ranges to 2022.

“The query is, will the provision be there? And whenever you look roughly on the enhance of provide out there subsequent yr, the place will that be coming from? Effectively, it is going to be coming largely from incumbents,” he mentioned.

“Subsequently, I might foresee costs to stay at excessive ranges. And excessive ranges to me means something above (US$40,000 per tonne); it is already extraordinarily excessive. It’s totally worthwhile for any producing asset.”

For the non-executive director of Galan Lithium (ASX:GLN,OTC Pink:GLNLF), cash will not be the principle barrier for growing lithium tasks. Jimenez believes the principle constraints are the useful resource, the know-how and the allowing. “However allowing is the one factor the place governments can actually assist shortly, and that is the place governments in Europe and North America, in the event that they really need this electromobility to exchange inner combustion engine autos, that is the place they should help the trade,” he mentioned.

Jimenez additionally shared what he expects to see subsequent yr in lithium, and what traits may affect the house going ahead. Hearken to the interview above to listen to extra of his ideas.

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Securities Disclosure: I, Priscila Barrera, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: Galan Lithium is a shopper of the Investing Information Community. This text will not be paid-for content material.

The Investing Information Community doesn’t assure the accuracy or thoroughness of the knowledge reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.