Harry Dempsey and Nic Fildes of the Financial Times are reporting miners are slashing costs and scaling back plans to increase production after battery metal prices plummeted more than 80% in 12 months. They write:
Lithium miners are cutting costs and scaling back plans to expand production after slowing demand in China for electric vehicles crushed the price of the battery metal. The price of lithium has tumbled more than 80 per cent in the past year to $13,200 per tonne, its lowest level since 2020, after excessive levels of supply hit the market, according to data group Benchmark Mineral Intelligence.
The price of lithium has tumbled more than 80 per cent in the past year to $13,200 per tonne, its lowest level since 2020, after excessive levels of supply hit the market, according to data group Benchmark Mineral Intelligence. […]
“Lithium balances are sensitive to small shifts in demand or supply growth, so the market is susceptible to heightened price volatility,” said analysts at Citi. “A supply reaction to the current lower price environment could prime the market for a rebound in the second half of 2024.”
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