Not so long ago, the metal was a niche product. Green electrification and electromobility have brought about change.
In the past, lithium prices were low, so little was invested in this area. Today, the demand forecasts for lithium are very good. And so now many young mining companies are also looking at new lithium capacity. November 2022, the ton of lithium carbonate needed for lithium-ion batteries cost around 80,000 US dollars. Currently, the price has come down significantly. Experts assumed there would be a surplus, but have changed their minds again, as has Goldman Sachs. A severe shortage is expected for a longer period of time. In 2022, the lithium price rose, Chinese subsidies for electric cars led to an exaggerated production of batteries, which then later drove lithium demand down, thus also the price. Because when the lithium price was still high last year, this naturally led to higher production volume and more investment activities. Higher prices can thus lead to lower prices.
In addition, demand in China declined as incentives for electric cars were scaled back. In the long term, the fact that priorities have given greater importance to the area of energy security due to the Ukraine war speaks in favor of lithium. Battery and storage technologies are more discussed than solar and wind projects. Add in the fact that conventional cars are scheduled to be phased out in the EU by 2035, and this will create long-term demand for lithium. Alpha Lithium and Century Lithium are taking care of lithium supply.
Alpha Lithium - https://www.commodity-tv.com/play/alpha-lithium-is-building-a-pilot-plant-found-a-fresh-water-source-wants-to-expand-hombre-muerto/ - owns prospective lithium projects in Argentina in the Lithium Triangle.
At Century Lithium - https://www.commodity-tv.com/play/century-lithium-excellent-position-to-be-the-next-lithium-producer-in-the-us/ -, the focus is on the Clayton Valley Lithium Project in Nevada.
Current corporate information and press releases from Alpha Lithium (- https://www.resource-capital.ch/en/companies/alpha-lithium-corp/ -) and Century Lithium (- https://www.resource-capital.ch/en/companies/century-lithium-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
In the past, lithium prices were low, so little was invested in this area. Today, the demand forecasts for lithium are very good. And so now many young mining companies are also looking at new lithium capacity. November 2022, the ton of lithium carbonate needed for lithium-ion batteries cost around 80,000 US dollars. Currently, the price has come down significantly. Experts assumed there would be a surplus, but have changed their minds again, as has Goldman Sachs. A severe shortage is expected for a longer period of time. In 2022, the lithium price rose, Chinese subsidies for electric cars led to an exaggerated production of batteries, which then later drove lithium demand down, thus also the price. Because when the lithium price was still high last year, this naturally led to higher production volume and more investment activities. Higher prices can thus lead to lower prices.
In addition, demand in China declined as incentives for electric cars were scaled back. In the long term, the fact that priorities have given greater importance to the area of energy security due to the Ukraine war speaks in favor of lithium. Battery and storage technologies are more discussed than solar and wind projects. Add in the fact that conventional cars are scheduled to be phased out in the EU by 2035, and this will create long-term demand for lithium. Alpha Lithium and Century Lithium are taking care of lithium supply.
Alpha Lithium - https://www.commodity-tv.com/play/alpha-lithium-is-building-a-pilot-plant-found-a-fresh-water-source-wants-to-expand-hombre-muerto/ - owns prospective lithium projects in Argentina in the Lithium Triangle.
At Century Lithium - https://www.commodity-tv.com/play/century-lithium-excellent-position-to-be-the-next-lithium-producer-in-the-us/ -, the focus is on the Clayton Valley Lithium Project in Nevada.
Current corporate information and press releases from Alpha Lithium (- https://www.resource-capital.ch/en/companies/alpha-lithium-corp/ -) and Century Lithium (- https://www.resource-capital.ch/en/companies/century-lithium-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
