Lithium producer share prices still under pressure

• Autores: William Clarke
• Localización: Industrial Minerals, ISSN 0019-8544, Nº. 609, 2019 (Ejemplar dedicado a: April)
• Idioma: inglés
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• Resumen

  • Producer share prices dwindle Bullish demand from consuming markets Energy storage demand equal or stronger than EV William Adams Lithium producers’ share prices have generally been under pressure since late 2017, with the share prices of a sample of 16 legacy, recently-in-production and next in line producers, on average trading at 15% of their 52-week high/low range. Since more electricity is required and while power generators strive to cut carbon dioxide emissions, more power will be generated from renewable sources; the variable nature of wind and solar power also necessitates more grid storage. New mines might traditionally have relied on investment from existing operators, investors and the financial sector but the downturn in the lithium market, combined with the fact that many of the mining giants - BHP, Anglo American and Glencore (Rio Tinto has the Jadar project) - are not substantially involved in lithium, may mean the massive multinational OEMs decide to step in to finance new projects, either through offtake agreements, joint ventures or direct ownership.Such a development would probably boost sentiment in the lithium sector, bringing forward a recovery.