With Goldman Sachs once again reiterating its belief that lithium prices will start its sharp decline later this year, many of the developers and explorers on the Australian share market run the risk of missing out on the sky-high prices the battery-making ingredient is commanding right now.
Goldman is forecasting the following average prices for these lithium types this year and next compared to current spot prices:
- Lithium carbonate
- Spot: US$66,750 a tonne
- 2023: US$53,300 a tonne
- 2024: US$11,000 a tonne
- Lithium hydroxide
- Spot: US$76,650 a tonne
- 2023: US$58,650 a tonne
- 2024: US$12,500 a tonne
- Lithium spodumene 6%
- Spot: US$5,990 a tonne
- 2023: US$4,330 a tonne
- 2024: US$800 a tonne
The good news is that a few ASX lithium shares are scheduled to commence production this year, which means they may still be able to benefit from the current high prices for a period of time.
Which ASX lithium shares are due to commence production?
Three ASX lithium shares targeting their maiden production this year are Argosy Minerals Limited (ASX: AGY), Core Lithium Ltd (ASX: CXO), and Sayona Mining Ltd (ASX: SYA).
In respect to Argosy Minerals, it has completed 98% of the total works required for the massive 2,000tpa Rincon Lithium Project in Argentina. It also recently produced 1 tonne of battery-quality lithium carbonate during the commissioning period. The company aims to achieve steady-state production operations by the end of the second quarter of calendar year 2023.
Core Lithium isn't far behind. In fact, the lithium developer made its first shipment of 15,000 dmt of 1.4% Li2O spodumene direct shipping ore last week. It is now aiming to commence spodumene concentrate production in the first half of 2023.
Finally, Sayona Mining is on the cusp of restarting the North American Lithium project with partner Piedmont Lithium Inc (ASX: PLL). At the end of last month, the company revealed that it was on track to restart production at the Quebec-based operation in the first quarter of 2023. Sayona owns 75% of the project, with Piedmont Lithium owning 25%.
