Up until a few months ago, the general consensus was that lithium markets were dangerously undersupplied. The resulting lithium boom caused prices to double in the last two years, rising as high as $16,500 per ton. However, there are now some forecasting a supply glut. Such predictions have rattled the industry that is undoubtedly experiencing an uptick in miners’ discoveries and projects, but such a rapid reversal remains questionable at this point.
The most prominent projection of lithium oversupply came in late February from Morgan Stanley. Only weeks later, commodities research house Wood Mackenzie released their own report, forecasting a decline in the price of cobalt and lithium this year which would turn into a rout from 2019 onwards.
Indeed, nations around the world are expanding or opening brand new mines, dedicating millions in new investment, but the two aforementioned reports seem to assume that all of them will yield ideal results. Considering lithium mining is still not a perfect process, this will most likely not be the case . . .