The Sinomine Resource Group chairman said prices of the critical mineral are set to continue cooling-off, providing some relief to EV makers.
| Lithium is going to get less expensive in 2023, according to a Chinese supplier of the battery metal, potentially offering some relief to electric-vehicle makers squeezed by soaring costs.
More mine supply is expected to push the lithium market into a surplus next year and help soften prices.“We believe the gradual, downward trend for lithium will continue next year,” Mr Wang said, predicting a fall of around a quarter from current levels that will still leave the company with “good” profits. Prices would not fall off a cliff as the market remains tight, said Mr Wang, whose company operates mines in Zimbabwe and Canada.
Benchmark prices in China are still about twice as high as the start of 2022 – despite declining this month – asMr Wang said he saw lithium carbonate prices drifting to about 400,000 yuan a ton in 2023. That compares with 527,500 yuan at present and a record of nearly 600,000 yuan in mid-November, according to data from Asian Metal. The lower level would still offer good margins for Sinomine, he said.
“Over the next six months, demand softness is likely to dominate the lithium price discussions as demand in China is challenged by zeroing subsidies and surging COVID-19 cases,” said Alice Yu, senior analyst at SSinomine wants to expand output worldwide, just as geopolitical tensions are growing with the US, Canada and others who are moving to restrict China’s role in the EV supply chain.
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