%Lithium prices continue to struggle after the alkali metal that’s widely used in electric vehicle batteries saw its price collapse over the past 18 months.
Analysts say the price of lithium has now likely bottomed but is having a difficult time recovering.
Lithium’s price peaked at $68,100 U.S. per metric ton in 2022. The price has since fallen more than 80% as demand for electric vehicles slows worldwide.
Analysts note that miners, refiners, and automakers are still working through a surplus supply of lithium that was accumulated between 2020 and the market’s peak in 2022.
Mined ores, lithium chemicals, batteries, and electric vehicles themselves are all in surplus around the world currently, depressing prices.
A vital component in rechargeable batteries, lithium was seen as essential to the electric vehicle revolution. However, automakers from %Ford (NYSR: $F) to Toyota (TM) are now scaling back their EV plans and pivoting to focus on hybrid gas-electric vehicles.
Consumer demand for electric vehicles has fallen sharply as prices remain high and the public infrastructure, i.e. charging stations, needed to support them has failed to materialize.
While many analysts still expect lithium prices to recover and rise over the next few years as demand eventually strengthens, there is no sign of an immediate recovery in lithium prices.