It certainly has been an incredibly tough time for ASX lithium stocks.
The likes of Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS) have fallen heavily in recent months in response to lithium price weakness.
The declines have been so brutal that Core Lithium recently announced plans to suspend production, IGO is deferring sales, and Liontown had a $760 million funding package cancelled by its lenders.
In light of this, investors will no doubt be wondering when the lithium price rout will finally be over.
Well, let's see what Goldman Sachs is saying this week about lithium prices.
Lithium price forecast
As a reminder, Goldman Sachs has been spot on about lithium prices over the last 18 months, correctly calling this collapse when others in the industry were adamant that demand would keep prices high. So, clearly it can pay to listen to what its analysts say about the price of the battery making ingredient.
Moving on, here's how spot prices are looking this week compared to the average of last year:
- Lithium carbonate – China: US$11,867 per tonne (2023 average: US$32,694)
- Lithium hydroxide – China: US$9,899 per tonne (2023 average: US$32,452)
- Spodumene 6%: US$1,000 per tonne (2023 average: US$3,712)
But where next from here? Let's see what Goldman is forecasting for lithium prices out as far as 2027.
Lithium carbonate – China:
- 2024: US$12,847 per tonne
- 2025: US$11,000 per tonne
- 2026: US$13,323 per tonne
- 2027: US$15,646 per tonne
Lithium hydroxide – China:
- 2024: US$13,795 per tonne
- 2025: US$12,500 per tonne
- 2026: US$14,323 per tonne
- 2027: US$16,146 per tonne
Spodumene 6%:
- 2024: US$1,175 per tonne
- 2025: US$800 per tonne
- 2026: US$978 per tonne
- 2027: US$1,155 per tonne
