The world’s largest lithium producer, which produced about half of the world’s lithium in 2022, said spodumene spot prices will fall to $2,200 per ton in 2025 from an average of $3,840 per ton in 2023.
Lithium hydroxide, a refined version of the metal used in batteries, could rise in price to about $30,000 next year from an estimated average Lithium price of $52,450 in 2023, according to a quarterly report released by Australia’s Department of Industry, Science and Resources last month ( USD/ton) said the tribe.
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According to Trading Economics, the precursor price of lithium hydroxide was 96,500 yuan per ton on Thursday, compared with about 170,000 yuan per ton in September.
“Lithium Prices are not expected to return to the highs of 2022 and early 2023 before 2025 due to projected oversupply,” the ministry said. “Some higher-cost producers, such as China’s Lepidolite Mining Company, are already unprofitable And production is limited. However, most lithium producers will remain profitable and continue to produce at current prices.”
Lower lithium spot prices could make electric vehicles and batteries cheaper, but could also hinder investment in developing battery metals mining projects that are needed for the broader transition to clean energy. In the long term, this could delay consumer adoption, undermine efforts to limit climate change and increase costs.
