Here's the lithium price forecast through to 2027

Where next for this battery material? Let's see what analysts at Goldman Sachs are forecasting.

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published January 23, 2024 9:21 am AEDT

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.

A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding — Image source: Getty Images

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

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