Lithium Stocks Took A Hit Amid Downgrade on Oversupply

The price targets cut coincided with Bank of America's downward revision of its lithium price projections, slashing them by 20% to 50% for the period spanning 2023 to 2025. Notably, the spot price of lithium carbonate in China has sharply plummeted to $23,850 per ton, marking a stark 70% decline from its peak in November of the previous year.

Additionally, China is solidifying its presence within the renowned 'lithium triangle' comprising Argentina, Chile, and Bolivia, a region responsible for more than 50% of the world's lithium resources. On Monday, Chile revealed a new agreement offering Tsingshan Holding Group advantageous lithium pricing for a project dedicated to the production of value-added lithium products in the South American nation. This announcement coincided with President Gabriel Boric's official visit to China, where he engaged in discussions with Xiang Guangda, the billionaire owner of the metal conglomerate. Simultaneously, in China, Argentine President Alberto Fernandez met with the leader of Tibet Summit Resources Co. to explore the company's substantial $2.2 billion lithium investments within Salta province.