Lithium price

The correction in lithium stocks after a white-hot run should remind investors the sector remains exposed to the age-old questions of supply and demand.

Lithium’s bull run isn’t necessarily over, but investors should recognise that while lithium might have felt like crypto in recent years, this is still the resources sector. Lithium bulls think about the supply and demand balance over the longer term. BHP has consistently made the point that lithium is not a scarce resource. The story of rising demand for lithium, from EVs particularly but also from stationary storage, is still very much intact. At the same time, many see Goldman’s view on supply as overly optimistic. Bloomberg’s commodity forecasting division, called BloombergNEF, this week released new projections suggesting sales of EVs will hit 20.6 million in 2025; just 12 months ago, its 2025 forecast was for 14 million sales.