Lithium costs have been on the rebound since Could after falling greater than 50 % from November to April.
“On this business now we have seasonality,” Daniel Jimenez of iLi Markets instructed 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 whole demand and whole provide, we did not see these surpluses that might have justified these worth drops.”
Jimenez believes the market will stay tight, with costs staying above marginal value 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 top 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 growing two lithium brine initiatives in Argentina: Hombre Muerto West and Candelas.
“Argentina has been a really engaging jurisdiction to develop lithium brine initiatives,” Jimenez mentioned. “I am fairly positive that by the top of this decade there shall be at the very least 10 operations producing lithium in Argentina.”
He additionally shared his ideas on what governments are doing relating to essential minerals.
“Yearly you come to those conferences, and also you see many initiatives the place allowing is on the similar stage it was final 12 months, and that’s not good,” he mentioned. “That is the place governments might assist very a lot. I feel financing isn’t such an enormous constraint.”
Hearken to the interview above for extra from Jimenez on what developments might affect the lithium house going ahead. You may as well 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 isn’t paid-for content material.
The Investing Information Community doesn’t assure the accuracy or thoroughness of the data 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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