This month has been disastrous for most ASX lithium shares, and the Liontown Resources Limited (ASX: LTR) share price hasn't escaped the hardship.
The stock has tumbled 19.7% since the end of May amid a broader lithium sell-off. At the time of writing, the Liontown share price is $1.14.
Let's take a look at what's been weighing on the lithium explorer and developer this month and what the future could bring.
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What's going on with the Liontown share price?
The 'lithium boom' hit a hurdle last week, plunging the share prices of lithium stocks like Liontown into the red.
The stock cratered 19% last Wednesday amid a barrage of seemingly bad news for the future of 'white gold'.
That day, reports Goldman Sachs was bearish on lithium prices hit headlines amid news Argentina had introduced a reference price for the commodity and that electric vehicle giant BYD planned to source its own lithium.
Goldman Sachs reportedly expects lithium prices to slump to U$16,372 a tonne next year. And plenty of other brokers also predict they'll slow down in the coming months and years.
Though, that might already be priced into the company's stock.
Macquarie reportedly expects lithium to trade for US$48,000 a tonne in 2023. It also believes the Liontown share price has factored in a lithium price of just US$11,000 a tonne, reports Livewire.
The broker has a $2.50 price target and an outperform rating on the company's stock. That represents a 110% upside on Liontown's current share price.
There's also plenty of hope for the company's future production. Tesla Inc (NASDAQ: TSLA) stepped in with a deal earlier this week that will see it snapping up 150,000 dry metric tonnes of spodumene concentrate each year from the company's Kathleen Valley Lithium Project. Production at the project is expected to begin in 2024.
