Lithium prices could remain elevated for longer, according to analysts at Macquarie equities.
ASX 200 lithium explorers include Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), Core Lithium Ltd (ASX: CXO) and IGO Ltd (ASX: IGO).
Pilbara shares are rising 2.14% today, while Core Lithium shares are leaping 4.20%. Mineral Resources shares are climbing 0.02%, while IGO shares are descending 0.63%.
Let's take a look at the outlook for the lithium price.
What's ahead?
Lithium prices can weigh on company earnings, hence the share price of ASX 200 lithium shares.
Analysts at Macquarie Bank Ltd (ASX: MQG) are optimistic lower lithium supply amid development delays and capex upgrades could be a positive for the lithium price, The Australian reported.
Macquarie's team is positive on ASX 200 lithium shares Mineral Resources and IGO, while it is also impressed with Pilbara's "full lithium exposure" via its Pilgangoora operation in WA.
Commenting on lithium supply, the Macquarie equities team said:
A struggling lithium supply could keep lithium prices higher for longer, a silver lining for the lithium industry.
Pilbara delivered a 10% increase in spodumene concentration production in the December quarter to 162,151 dry metric tonnes, as my Foolish colleague James reported last week.
Meanwhile, Argosy Minerals Limited (ASX: AGY) has shared an upbeat outlook for lithium in today's quarterly activities report.
In comments today, Argosy highlighted the "growing expectations across the market that supply will remain tight over 2023".
Significant growth in EV sales remains the most material driver for future lithium demand.
Share price snapshot
Pilbara Minerals shares have surged 56% in the last year, while Core Lithium shares have soared nearly 61%.
IGO shares have leapt 33% in the last year, while Mineral Resources shares have exploded 71%.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has soared nearly 14% in the last year.
