Home / Sector / Materials Shares / Here's the lithium price forecast through to 2027

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.

Posted by
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
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Materials Shares

Why I'd invest $10,000 in BHP shares now

| Grace Alvino

BHP is trading close to a record high, but I would still be comfortable putting money into the shares today.

Read more »

A construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer.
Materials Shares

Tivan receives $3m IPCM grant for Speewah Fluorite Project

| Laura Stewart

Tivan received an extra $3 million in IPCM grant funding to advance its Speewah Fluorite Project in Western Australia.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Glencore is thinking about listing on the ASX. Is this an opportunity for investors?

| Mark Verhoeven

One of the world’s biggest miners wants a slice of the ASX.

Read more »

A man in a hard hat and high visibility vest speaks on his mobile phone in front of a digging machine with a heavy dump truck vehicle also visible in the background.
Materials Shares

Tivan appoints advisor for Speewah Fluorite Project finance update

| Laura Stewart

Tivan appoints ICA Natural Resources to advise on project finance for the Speewah Fluorite Project, advancing funding and feasibility work.

Read more »

Man analysing data on his laptop.
Materials Shares

$10,000 invested in Rio Tinto shares 12 months ago is now worth…

| Grace Alvino

Most investors know Rio Tinto for income. I suspect fewer expected a $10,000 investment to move this quickly.

Read more »

Two workers working with a large copper coil in a factory.
Materials Shares

BHP's copper guidance surprise: what does this mean for BHP shares

| Mark Verhoeven

A soft copper number, but a much stronger balance sheet.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Are Fortescue shares a buy in August?

| Grace Alvino

The headline dividend yield looks tempting. But what caught my attention was how quickly the income could fall after FY26.

Read more »

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today
Share Fallers

Down 43%! What on earth happened with Liontown shares in July?

| Bernd Struben

Investors pummelled Liontown shares in July. Time to buy?

Read more »