Battery 🔋

BMI expects lithium prices to continue to be under pressure in 2024-2025, below the high point of 2023-2023 due to the rapid expansion of global lithium supply, which has led to an excess in the lithium market.

In its lithium price outlook, BMI said that in the long run, lithium prices may be affected by technological innovations in battery chemistry, including the use of batteries that do not contain lithium or require a reduction in the amount of lithium. While increased demand for lithium chemicals for electric vehicle batteries and energy storage systems is expected to support prices around current levels in the short term, increased lithium supply from large and emerging players is expected to limit further price increases.

The agency added: “Additionally, battery recycling technology is progressing faster than expected, posing a downside risk to lithium prices by drastically expanding sustainable lithium supply.”