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Lithium's three headwinds: substitution, price drop and demand weakness
Lithium's three headwinds: substitution, price drop and demand weakness
ratings:
Length:
26 minutes
Released:
Apr 22, 2023
Format:
Podcast episode
Description
Despite lithium prices halving in 2023, Battery Materials Review Managing Editor Matt Fernley is optimistic about the metal. On Friday Fernley recorded Kitco Roundtable with mining audiences manager Michael McCrae. This decade lithium went on a stellar run, trading up 10x versus historical levels, but in 2023 the metal took it on the chin. In 2023 Benchmark Mineral Intelligence estimates that lithium prices have been cut in half. Fernley is sanguine. "It is just a reasonable cyclical downturn," said Fernley, noting that there have been production cuts in Asia that should help the metal. "We're already below the marginal cost of production for a number of assets in China. That's going to continue in April. I believe that lithium prices will pick up over the next couple of months." Other news weighing on the metal is Tesla's price cuts. Growth is still strong, noted Fernley, who expects 25% to 30% year-on-year growth in European EV demand. Lastly, CATL said it is making advances in sodium-ion batteries. Fernley said the technology still needs to scale, and the material has to be sourced in large quantities. Lithium ion will not be substituted by the new technology. "It would be quite difficult for the sodium ion supply chain to ramp up capacity. The problem is getting pure enough sodium hydroxide or sodium carbonate to use in your batteries."
Released:
Apr 22, 2023
Format:
Podcast episode
Titles in the series (100)
Gold will benefit from gov't stimulus, but copper could run further: The Democrats stimulus plan will be positive for gold, but it will be extremely positive for copper, said John Steen, associate professor at the University of British Columbia's mining school. On Friday Steen joined Kitco Roundtable to discuss stimulus, renewables and the electrification of everything, and the knock-on affect on metals, chiefly copper and nickel. Steen was joined by correspondent Paul Harris; editor Neils Christensen; and mining audiences manager, Michael McCrae. Republican and Democrat leaders are negotiating a COVID-19 stimulus package in excess of $2 trillion. President Biden is ahead in the polls, which could tilt the eventual stimulus to policy goals favored by Democrats. by Kitco NEWS Roundtable