Great news for lithium investors: the super cycle in lithium is resuming. The lithium market experienced a pullback in the last 6 months. A few weeks ago, we mentioned that The Lithium Market Is Bottoming, A New Lithium Bull Run Is Looming. We believe that new next leg in lithium’s mega bull market is resuming. It will start slowly, obviously, but accelerate later this year, as per our current expectations expressed in our lithium forecast 2023.
Let’s review a few lithium charts to make the point.
Spot lithium – the weekly chart features the 2023 drop and the bounce that started in May. This bounce is young, it needs much more ‘body’ to qualify as a solid foundation (consolidation) on which the next leg higher can start. But the point is that spot lithium should not move much lower from here in order to allow lithium miners to continue their uptrend.
Spot lithium (in China) registered a meaningful bounce in the last 4 weeks. This is promising, and makes the point we have been making for a while: the drop in China’s lithium price qualifies as a back-test. What we mean by that is that the price of lithium in China fell back to the point where the accelerated (exponential) move started in 2021.
What does all this imply for lithium miners? In the end, it’s not possible to invest in spot lithium.
The ETF that comes close to tracking the lithium space is LIT ETF, featured below, also in prior articles like Lithium Price Breaking Out Aggressively, Lithium Miners Will Follow Suit.
LIT ETF has been bouncing, for some 9 months now, between 57 and 75 points. The really good news is that it registered a higher low, so far at least. We believe that the worst is over for the lithium space, new positions can be initiated.
In our Momentum Investing service, we are planning to update our top lithium top mining selection: Lithium & Graphite Stock Selection.