According to the Investing News Network, lithium demand is expected to grow over the next decade due to increased use in electric vehicles and energy storage. This information was discussed at the recent Lithium Supply and Battery Materials Conference, where William Adams of Fastmarkets provided insight into the current state of the lithium sector.
Lithium price rebounds, but downside is also possible
Adams noted that lithium prices have rebounded from April’s lows and that he personally thinks there is potential for further gains. However, he said it’s possible that prices will drop a bit as the market consolidates. Data from the fast market shows that both supply and demand are currently weakening.
Expect demand to improve in the second half of the year
Adams expressed hope for improved demand in the second half of the year, with some signs already starting to emerge. He expected the lithium market to be tight this year, but not as tight as last year.
Supply issues and the need for more evidence of demand recovery
Adams emphasized that supply should be online, but there are still delays. He thinks what people want to see is more evidence and data supporting a recovery in demand. He says this will be crucial in determining the future of the market.
Insights into the energy storage sector
Adams also shared insights into what’s happening in the energy storage sector and what we can expect in the coming years. His thoughts on lithium prices, the near-term outlook, and more can be found in the interview below.
