An international lithium market analyst has predicted the lithium hydroxide price could reach $100,000 per tonne.
ASX lithium shares include:
Sayona Mining Ltd (ASX: SYA) – up 48% in a year
Pilbara Minerals Ltd (ASX: PLS) – lifted 109% in a year
Core Lithium Ltd (ASX: CXO) – up 160% in a year
Allkem Ltd (ASX: AKE) – risen 58% in a year
Lake Resources N.L. (ASX: LKE) – climbed 14% in a year
Image source: Getty Images
What's ahead?
Speaking on 3AW, Global Lithium LLC founder and president Joe Lowry said he "absolutely" believes high lithium prices can be sustained. He said:
It's all supply and demand, and the EV [electric vehicle] market is taking off, driving demand.
There's really nothing in the cards in the few years to bring the price back to the old level.
Asked if he believes prices as high as US$80,000 a tonne for lithium hydroxide can be retained, Lowry said:
There's nothing really to keep it at the level it is today if the pressure on supply continues. I think it could touch 100, in that range.
Lithium hydroxide on the London Metals Exchange (LME Lithium Hydroxide CIF Fastmarkets MB) is fetching US$83,500 a tonne at last look.
Allkem this week advised of maiden lithium hydroxide production from the Naraha Lithium Hydroxide plant in Japan. Allkem has a 75% interest in this project, which is a joint venture with Toyota Tsusho Corporation.
Meanwhile, Pilbara Minerals is in a joint venture with Korean steel giant POSCO to develop a 43ktpa lithium hydroxide chemical processing facility.
Sayona is planning to develop a spodumene conversion facility at its North American Lithium (NAL) operation to produce lithium hydroxide or lithium carbonate.
What about Western Australia?
Lowry also tipped big things for Western Australia. He said in the last five years it has become "the most significant lithium province in the world". He added:
I think WA will continue to dominate for the foreseeable future.
What else?
ASX lithium shareholders have had a turbulent week, with lithium shares falling dramatically on Tuesday after lifting on Monday.
Today, lithium shares are a mixed bag. For example, Pilbara Minerals shares are climbing 1.22% and Allkem shares are rising 1.51%. However, Core Lithium shares are down 2.86%, Sayona Mining shares are falling 2.13% and the Lake Resources shares are descending 0.47%. Pilbara reported positive news from its spodumene concentrate auction on the Battery Material Exchange (BMX) today.
Macquarie analysts this week said they remain optimistic on the lithium price despite major falls earlier this week. Analysts, quoted by the Australian Financial Review, said:
Despite near-term future price volatility, we believe buoyant lithium prices present potential for valuation upside to all lithium names under our coverage universe.
