The Core Lithium Ltd (ASX: CXO) share price is slumping today, down 8.2%.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium producer closed yesterday at $1.40 and are currently trading for $1.28.
The Core Lithium share price had been trending higher since Labor's election win, with the new government's commitment to steeper emissions cuts spurring interest in critical battery metals like lightweight, conductive lithium.
But new research out from Goldman Sachs looks to have reversed that trend, with most every ASX lithium share deep in the red today.
What is Goldman Sachs forecasting?
The global broker believes that investor exuberance has exceeded current market reality in the lithium space.
Despite noting that "battery metals will play a crucial role in the 21st century global economy", Goldman said (quoted by The Australian), "We see the battery metals bull market as over for now."
The end of the current bull market, Goldman added, comes after "a surge in investor capital into supply investment tied to the long-term EV demand story… has in turn generated an outsized supply response well ahead of the demand trend in focus.
"In this context, we see prices on a downward trajectory over the course of the next two years, with a sharp correction in lithium, and to a lesser extent cobalt."
Core Lithium share price snapshot
No one likes to see a stock they're holding sink 8% on any given day.
But even with today's fall factored in, the Core Lithium share price remains a top performer over the mid and long-term.
Year-to-date, shares are up 108%, compared to the 5% loss posted by the ASX 200.
If you'd bought shares 12 months ago, you'd be sitting on a gain of 429%.
And the Core Lithium share price is up an eye-popping 1,714% over the past 5 years.
