Lithium Metal Prices Trend and Forecast

North America

Overall the Lithium Metal Prices in the North American region observed a slight to negligible shift during the last quarter. The impact of slowdown of Lithium salts in the far east Asian region has levied a considerable impact, as the rapid growth in the offered quoted has been limited. However, the cost support from the feedstock has remained persistent on an upward trajectory. Whereas, the Lithium ingot supply has improved after the import volumes drastically improved as the Asian Lithium ingot suppliers were keen to destock the running inventories ahead of the upcoming holidays. In addition, during the quarter’s end, the market dynamics have disrupted considerably as the downstream manufacturers took precautionary measures by reducing or temporarily suspending the operating rates at the enterprises ahead of the extreme weather conditions coupled with the transportation disruptions.    

Asia Pacific

In the fourth quarter of 2022, the Lithium metal market in the Asia Pacific region observed a considerable relaxation in availability as the considerable supply of the feedstock was diverted to make Lithium metal instead of Lithium salts for EV batteries. As per the market experts, the drop in the sales of EVs in China and the conservative attitude of the far east Asian markets to restrict the cash outflow in order to improve the enterprise’s financial performance in annual reports has curtailed the Lithium Carbonate Prices. As a ripple effect, the Lithium metal growth has been limited, even though the cost support from the feedstock spodumene has remained at a higher level.

Europe

The Lithium metal in the European market has remained stagnant, with a considerable shift in the market dynamics during the fourth quarter of 2022. The cost of living in the region has soared to historic highs on the backdrop of rising inflation and interest rates. In addition, the supply and demand outlook both were pressurized amidst the high energy rates in the European markets. The smelters have dropped production to sustain netbacks. At the same time, a similar trend was also witnessed in the downstream industries. However, the demand deficit was covered by the import of Lithium metal from the overseas market.

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