Lithium costs have been on the rebound since Might after falling greater than 50 p.c from November to April.
“On this trade we’ve got seasonality,” Daniel Jimenez of iLi Markets informed the Investing Information Community on the sidelines of this 12 months’s Lithium Provide and Battery Uncooked Supplies convention, hosted by Fastmarkets. “However all in all, while you make the sum of complete demand and complete provide, we did not see these surpluses that may have justified these worth drops.”
Jimenez believes the market will stay tight, with costs staying above marginal price of manufacturing ranges.
“I do not see it as inconceivable that we see US$60,000 or US$70,000 (per tonne) worth ranges once more in the direction of the tip of the 12 months,” mentioned Jimenez, who previously labored at prime lithium producer SQM (NYSE:SQM). He’s additionally a board member of Galan Lithium (ASX:GLN), which is creating two lithium brine tasks in Argentina: Hombre Muerto West and Candelas.
“Argentina has been a really engaging jurisdiction to develop lithium brine tasks,” Jimenez mentioned. “I am fairly positive that by the tip of this decade there might be no less than 10 operations producing lithium in Argentina.”
He additionally shared his ideas on what governments are doing in relation to crucial minerals.
“Yearly you come to those conferences, and also you see many tasks the place allowing is on the similar stage it was final 12 months, and that isn’t good,” he mentioned. “That is the place governments might assist very a lot. I feel financing just isn’t such an enormous constraint.”
Take heed to the interview above for extra from Jimenez on what tendencies might affect the lithium house going ahead. You too can click on right here for our recap of the Fastmarkets occasion.
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Securities Disclosure: I, Priscila Barrera, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: Galan Lithium is a consumer of the Investing Information Community. This text just isn’t paid-for content material.
The Investing Information Community doesn’t assure the accuracy or thoroughness of the knowledge reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.
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