Joe Lowryyoutu.be
Final yr noticed lithium costs rally to all-time highs, with unprecedented demand anticipated within the coming years because the world continues to maneuver towards inexperienced vitality sources.
Talking with the Investing Information Community (INN), lithium knowledgeable Joe Lowry of World Lithium shared his insights on the lithium sector, from provide and demand dynamics to excessive costs.
“The yr 2022 would be the yr of essentially the most divergence from excessive to low-end pricing that we have ever had — by a large margin,” Lowry advised INN. “I count on the market to proceed to be tight for the remainder of the last decade.”
For Lowry, present lithium costs, which elevated over 400 p.c in 2021 and are up greater than 100% year-to-date, are too excessive and unhealthy for the sector.
“I do not suppose the business is nicely served by US$80,000 a tonne pricing,” stated Lowry, who’s the host of the World Lithium Podcast. “Largely it is the fault of the people who want the lithium essentially the most as a result of they weren’t there to speculate, to help small tasks when it was wanted.”
A key theme mentioned at this yr’s Fastmarkets Lithium Provide and Uncooked Supplies convention was easy methods to scale up provide to fulfill rising demand, with producers calling for extra cooperation within the provide chain.
“You possibly can construct a gigafactory in two years, nevertheless it takes as much as 10 years or extra to carry on a greenfield lithium undertaking,” Lowry stated. “You couple that with the truth that now demand is rising every year greater than the entire market was in 2016 — that is an enormous distinction.”
Worries over extra lithium provide have hit the market in current weeks on the again of a report launched by Goldman Sachs (NYSE:GS) analysts, who’re calling for a crash in costs by 2023. However for Lowry, the lithium market is in an actual structural scarcity that’s going to final a couple of years.
“It will likely be internalized by nearly all people by 2023,” he stated. “It will be an fascinating few years. However I do suppose that the lithium state of affairs will power changes by the (authentic tools producers).”
Lowry additionally shared his perception on Asia and the west, investing throughout a season of volatility and what he expects to see from now till 2025 in lithium. Hearken to the interview above to study extra of his ideas; you too can click on right here for INN’s full playlist from the occasion on YouTube.
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Securities Disclosure: I, Priscila Barrera, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: 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 mirror 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.
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