Daniel Jimenez: Count on Lithium Costs to Stay Excessive in 2023youtu.be
After a 12 months the place lithium costs remained at excessive ranges, 2023 might deliver one other 12 months of beneficial properties.
“The worth ranges lithium reached had been most likely one thing I personally didn’t think about that will occur in 2022, and it occurred,” mentioned Daniel Jimenez of iLi Markets. “On the finish of the day, the worth stage is what finish customers had been keen to pay.”
Jimenez, who beforehand labored for high lithium producer SQM (NYSE:SQM), instructed the Investing Information Community that the opposite shock in 2022 was the large progress in electrical car (EV) gross sales in China.
“And however, a disappointment on what occurred in EV gross sales in Europe. The place had been these gross sales? They’ve been pretty flat,” he mentioned. “They’ve grown, however not on the spectacular charges that China has, and even the US.”
Subsequent 12 months, Jimenez is anticipating demand for EVs to develop at related ranges to 2022.
“The query is, will the availability be there? And once you look roughly on the improve of provide available in the market subsequent 12 months, the place will that be coming from? Nicely, it is going to be coming principally from incumbents,” he mentioned.
“Subsequently, I might foresee costs to stay at excessive ranges. And excessive ranges to me means something above (US$40,000 per tonne); it is already extraordinarily excessive. It’s extremely worthwhile for any producing asset.”
For the non-executive director of Galan Lithium (ASX:GLN,OTC Pink:GLNLF), cash just isn’t the primary barrier for creating lithium tasks. Jimenez believes the primary constraints are the useful resource, the know-how and the allowing. “However allowing is the one factor the place governments can actually assist rapidly, and that is the place governments in Europe and North America, in the event that they actually need this electromobility to interchange inner combustion engine autos, that is the place they should assist the trade,” he mentioned.
Jimenez additionally shared what he expects to see subsequent 12 months in lithium, and what tendencies may impression the area going ahead. Hearken to the interview above to listen to extra of his ideas.
Do not forget to observe us @INN_Resource for real-time updates!
Securities Disclosure: I, Priscila Barrera, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: Galan Lithium is a consumer of the Investing Information Community. This text just isn’t paid-for content material.
The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.
From Your Web site Articles
Associated Articles Across the Internet