The Mineral Resources Ltd (ASX: MIN) share price finished well in the red on Wednesday.
The explorer's shares closed 8.07% lower at $58.70 apiece. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) closed 0.32% lower
So what was hurting the Mineral Resources share price today?
Lithium price concerns
Broader market sentiment on lithium prices appeared to impact the Mineral Resources share price today.
Mineral Resources explores and produces both lithium and iron ore in Western Australia.
In the third quarter of FY22, the company produced 104,000 dry metric tonnes of spodumene concentrate from its Mt Marion Lithium Project, a 6% increase on the previous quarter.
Mineral Resources was not alone in its plunge today, however. Other ASX lithium shares that tumbled include Core Lithium Ltd (ASX: CXO), down 20.43%, and Pilbara Minerals Ltd (ASX: PLS) which closed 22.03% lower.
Allkem Ltd (ASX: AKE) shares finished down 15.83% while the Liontown Resources Limited (ASX: LTR) share price ended the session 19.08% in the red.
In the US, the Lithium Americas Corp (NYSE: LAC) share price also plummeted nearly 13% on the New York Stock Exchange on Tuesday.
A note out of Goldman Sachs forecasting the battery metals bull market is over seemed to impact lithium shares in both Australia and the United States.
Goldman said prices for battery metals are on a downward trajectory and predicted a "sharp correction in lithium". Analysts added:
With climate change top of mind, investors are fully aware that battery metals will play a crucial role in the 21st century global economy, just as bulk and base metals did before them.
Yet despite this exponential demand profile, we see the battery metals bull market as over for now.
Analysts went as far as predicting the lithium price could fall from its current level of about US$60,350 per tonne to $16,372 per tonne by 2023. This would be a nearly 73% crash in lithium prices.
Share price snapshot
The Mineral Resources share price has jumped 26% in the past year, while it is up 5% year to date.
For perspective, the S&P/ASX 200 Materials Index has leapt nearly 4% in the past 12 months and 6% since the start of the year.
Mineral Resources has a market capitalisation of about $11.2 billion.
