Lithium prices to stay strong until 2024

Prices are expected to fall back as more production comes online in the middle of the decade, says Fitch Solutions

Accelerating demand for lithium-ion batteries for use in electric vehicles (EVs) and energy storage systems and a tight upstream will support elevated lithium prices in the short term, according to a market report from research firm Fitch Solutions. As a result, Fitch forecasts the market's supply deficit will widen from 259,000t in 2022 to 329,000t in 2023. After 2024, pricing pressures will ease as manufactures close offtake agreements with mines. “We expect that prices will crash in 2025 as a large volume of production comes online, only to recover upwards again as the supply deficit expands once more,” says the report. $67,000/t – Forecast lithium prices in 2022 Lithium prices ha