By Tim Bird @Adobe Stock

Rhiannon Hoyle of The Wall Street Journal reports that instead of cutting back on lithium output to balance easing demand growth, miners have sought to ride out the downturn by slashing costs and putting off new projects. Hoyle writes:

Lithium prices are plumbing multiyear lows in a market awash with the battery material, and it’s unlikely they have hit rock bottom yet.

The race to build new mines for a clean-energy transition that’s expected to need lots of lithium has pushed global production out of lockstep with demand in the small but fast-growing market.

Lithium-ion batteries are key to powering electric vehicles, among other things, but consumers have been slower to make the switch from gas-powered cars than many investors and auto executives envisaged. […]

Citi analysts estimate lithium futures could fall by another 15% to 20%. Prices could then rebound as early as next year, especially if confidence in electric cars improves again, they added.

A bottom for lithium prices is certainly closer, analysts at Morgan Stanley said in a note to clients this week. “But we are not there yet.”

Read more here.