Although lithium has been a hot S&P/ASX 200 Index (ASX: XJO) investment theme the last few years, just over the past six months, the commodity price has cooled off considerably.
That's perfectly demonstrated in the Pilbara Minerals Ltd (ASX: PLS) share price, which has sunk more than 28.6% over that period.
So is it time to buy the dip, or have lithium producers passed their bull run?
Professional investors aren't worried about dipping lithium prices
Lucky for The Motley Fool readers, a pair of experts this week had some opinions about the future of Pilabara shares.
They both rated it a buy.
Baker Young managed portfolio analyst Toby Grimm wasn't too worried about the short-term crash in lithium prices, as the demand for the battery ingredient would not wane in the long run.
He cited Liontown Resources Ltd (ASX: LTR)'s rejection of Albemarle Corporation (NYSE: ALB)'s takeover bid as evidence that the industry itself is confident about the future of lithium.
"We believe Pilbara is worth adding to portfolios."
eToro market analyst Josh Gilbert noted that Pilbara is increasing its output, which would cancel out the short-term dip in the commodity price.
"Pilbara plans to increase production by 17% this year, with a target of doubling production by 2026."
He urged investors to buy in with a long-term view.
"Electric vehicle adoption has really only just begun and has a long runway, with lithium demand only set to increase in the years ahead," said Gilbert.
"According to Bloomberg, lithium-ion battery demand is expected to more than double in 2023 from 2020 levels, whilst EV sales look set to increase by more than 30% in 2023."
Plenty of Gilbert and Grimm's peers agree with their bullishness on Pilbara.
According to CMC Markets, 10 out of 17 analysts currently rate the stock as a buy. Nine of those even recommend Pilbara as a strong buy.
