Lithium price to decline by 42.7%: Report

Australia, which produced half of the lithium in 2022 and is the world’s biggest lithium producer, has said the price of the mineral will fall to US$2 200 in 2025 from US$3 840 per tonne in 2023.

Science and Resources, a quarterly of the Australian Department of Industry, said lithium hydroxide, a refined version of the metal used in batteries may decline to around US$30 000 per tonne next year from around US$52 450 in 2023.

A precursor to the hydroxide - lithium carbonate - was 96 500 yuan on Thursday down from 170 000 yuan in September last year, according to Trading Economics.

“Prices are not expected to return to previous levels such as during 2022 and early 2023 before2025 due to the forecast surplus in supply. Some higher cost producers such as lepidolite miners in China, have become unprofitable and cut production. However, most lithium producers will remain [profitable at current prices and continue to produce,” the department said.

The lower spot lithium prices may make electric cars and batteries less expensive but they would hamper investment to develop battery metal mining projects needed for wider transition to cleaner energy.

That could delay consumer acceptance, thwart attempts to limit climate and increase costs in the long run. – Mining Zimbabwe