Lithium has already overcome a two-year surge this month.
According to a Chinese battery metal supplier, lithium will become more affordable in 2023, possibly bringing some respite to electric car manufacturers suffering from escalating expenses.
The profitability of lithium production is abnormal.
“We expect a fall of around a quarter from present levels, which will still leave the company with a comfortable profit,” said Wang Pingwei, chairman of Sinomine Resource Group Co. “We believe that the gradual downward trend in lithium prices will continue next year.”
Since Bloomberg NEF began tracking battery pricing nearly ten years ago, the steady climb in lithium since 2020 has impacted consumers and contributed to the first yearly increase in battery prices.
Despite a drop this month, benchmark prices in China are still around twice what they were at the beginning of 2022 because demand from the rapidly expanding electric vehicle sector outpaces supply.