Lithium prices haven’t bottomed out just yet.
But it’s nearing. In fact, according to The Wall Street Journal, prices have fallen too much to cover the cost of supply needed for electric vehicles. All of which will eventually lead to monster opportunity for lithium stocks.
“A recovery isn’t yet in sight, but one will have to come eventually. Lithium prices are now too low to justify a chunk of today’s ore extraction in Australia and China, let alone investment in new production necessary to feed expected growth in the EV market. That is setting up the conditions for a shortage and rally,” they added.
We also have to consider that with some lithium mines shutting down or reducing production, that will eventually lead to another supply shortage at some point. The moment that happens, lithium prices and related stocks, like Albemarle (ALB) could race higher again.
While we wait for that to happen, we can at least collect ALB’s dividends.
