The lithium industry has encountered a significant downturn, with Bank of America's senior commodities strategist, Michael Widmer, slashing the price forecast for lithium-rich spodumene concentrate by a dramatic 63% for this year, and by 34% for 2025. Citing a backdrop of softer electric vehicle (EV) demand, Widmer lowered his 2024 price target to $650 a tonne from the previously anticipated $1,763.
“Operators have been reluctant to curtail production, the project pipeline is well filled, and we continue to expect very high surpluses,” wrote Widmer. "This should keep the pressure on prices for now." The analyst added, “Eventual announcements of lithium production cuts will be key to a price rebound.”
