Podcast: October Lithium Market Outlook
Taking a step back and observing the market at a high level one
could almost see lithium acting like a conventional commodity
chemical. The typical commodity cycle is oversupply leads to price
declines, consolidation, and then rationalization. I say almost as
we have oversupply, price declines, consolidation but not
rationalization, in fact, we expect the opposite to occur. With the
current consolidation we are seeing, high quality assets that are
struggling with finances are being acquired or invested in by more
established better funded market participants.
We believe that this consolidation by established market participants will lead to a more disciplined market where expansions will continue as needed rather than in a race to be first leading to less volatility in pricing as oversupply and shortages become less severe.
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