Has lithium price finally hit bottom?
Oct,04,24
Has lithium price finally hit bottom?
The recent news events have stimulated the stock price of the lithium industry. Prior to this, the stock prices of the industry were generally under tremendous selling pressure, and many people hesitated whether to stop losses or continue holding after the stock price rebounded. After the recent rebound dust settles, does the chart show that lithium prices have bottomed out? We studied key lithium mines and charts of global and Australian Securities Exchange (ASX) lithium mining stocks.
For Australian resource investors, these have been incredible weeks, especially those who have invested in lithium stocks. Here is a brief review of some of the main positive catalysts that have triggered significant increases in these industries and the S&P/ASX Resource Index.
-China Ningde Times New Energy Technology Co., Ltd. (CATL), the world's largest battery manufacturer for electric vehicles, announced that it would suspend its production of lithium mica ore in Chinese Mainland, which was seen as a benefit to the price of lithium ore, because it reduced some existing oversupply.
-The main broker Citigroup stated that a major short-term low in lithium ore prices has emerged and predicted that lithium carbonate prices may rise by "20-25%" in the next quarter.
Has the lithium price already hit bottom?
-For lithium investors who have suffered for a long time, good news is that in the past two weeks, it is not uncommon for lithium mining stocks listed on the Australian Stock Exchange to rise by 10-20% in price. But before the recent rebound, many lithium mining stocks had fallen more than 80% from their peak in 2022. From a mathematical perspective, achieving a 20% increase in the remaining 20% of investments still means a loss (theoretically accurate at 76%).
-Let's set aside rumors, news, and rhetoric and examine charts to attempt to answer the question: Has the lithium price on the Australian Stock Exchange hit bottom?
Lithium ore: Dead cat rebounding again?
Lithium carbonate
-Lithium carbonate is often considered the minimum standard for lithium ore used in the production of electric vehicle batteries, to the extent that other lithium ores are often expressed in terms of lithium carbonate equivalent (LCE). This chart shows the dismal state of lithium ore prices since their peak in 2022.
