The largest lithium producers across the globe are remaining bullish on long-term demand for the battery material, Reuters reports.
This has been sparked by recent price drops, exacerbated by concerns that electric vehicle adoption is slowing across the world.
LG Energy Solution, General Motors, Honda, and other automakers and battery manufacturers have cut down on their EV expansion plans recently following rising interest rates and concerns about a supply overabundance for lithium.
Benchmark Mineral Intelligence has kept track of lithium prices this year and found that prices have dropped more than 60%.
Demand for lithium is expected to be higher this year than in 2022, but investors have low expectations for industry growth due to unimpressive quarterly reports from Albemarle, Pilbara Minerals, Livent, and others.
The world’s largest lithium-producing country, Australia, saw Pilbara Minerals become the most-shorted stock on the Australian Stock Exchange, leading many to think that investors are not optimistic about lithium demand.
Chris Berry, an independent lithium analyst and consultant, has told his clients to focus on price ranges offered for lithium, not just spot. Berry added that lithium prices today still outdo historical trends.
Lithium producers have expressed in recent days through calls to investors and analysts that they view the current market volatility as being temporary and that electrification will continue to expand.