ASX lithium shares have suffered on multiple fronts in recent times.
An oversupply has seen lithium prices plummet, dropping about 80% over the last few years.
And the share prices of ASX lithium companies have been dragged down alongside spodumene and lithium hydroxide prices.
The Pilbara Minerals Ltd (ASX: PLS) share price has gone from $5.42 in October 2022 to its current price of around $1.36.
That's a decline of about 75%.
Meanwhile, Minerals Resources Ltd (ASX: MIN) has shed about 80% of its value over that same timeframe, and the Liontown Resources Ltd (ASX: LTR) share price is down just as much.
Have we hit the bottom?
Back in April 2023, I was hearing the lithium price had bottomed out.
It had, to some extent, before staging a comeback.
Then it started to sink again.
Hard rock
About a year ago, I started hearing the lithium price had hit the floor.
And six months ago I was hearing the same thing.
A few months ago, in late January, Pilbara Minerals CEO Dale Henderson suggested the lithium price was about to turn around.
He told the Financial Review:
"We are seeing what appears to be a bottom price point in October … and what preceded that was approximately 18 months of broad decline. Subsequently, we've seen a small rise, which is obviously great to see.
"What we've observed for the December quarter could be potentially an inflection point."
Since then, the lithium price has shed another 10%.
More recently, I'm told the price of lithium can't go any lower.
But it can.
Much lower.
And it has before.
Back in 2020, the price of lithium was around 40% lower than its current value.
A recent report from Australia's Department of Industry, Science, and Resources states that global lithium demand is forecast to grow by almost 13% a year to 2030.
But things change.
And now, amid high market volatility, things are changing quickly.
Rule books are being torn up and the global world order is being broken down and reshaped.
A report released a couple of weeks ago, or even a couple of days ago, has likely lost its validity.
Now, anyone claiming to know where this all ends is putting their credibility on the line just by opening their mouth.
Still, I'm keen to get exposure to the lithium space.
But I'm going to take my time and carefully scrutinise all valid options available on the ASX.
