Stubbornly resilient lithium supply remains hurdle to recovery

A persistent lithium glut and the prospect that some mines could be restarted if prices rise means the battery metal is unlikely to mount a significant recovery this year.

Lithium prices have plunged since late 2022 on oversupply and slower-than-expected growth in electric vehicle demand. The rout has resulted in some mining capacity being suspended, but most analysts still see a surplus this year, although they forecast it will be smaller than in 2024.