In this post, we look at the beaten down lithium market. Spot lithium and lithium futures have registered a massive decline. We believe the bear market is ending now, a long term bottom formation is about to start. Long term investors will find epic opportunities in the lithium space.
Mid-2023, we wrote that the Lithium The Mega Bull Market Is Resuming. We said it would start slowly, and accelerate over time.
September 13th, 2024 – That market call appeared wrong. The lithium market continued its decline, and became epic. As we know, epic crashes come with epic long term opportunities.
September 13th, 2024 – We believe the massive decline in the lithium market is ending now. Epic bottoming opportunities are available in our view though investors must be very selective. The point is this: the lithium price graphs are exhausted, the downside potential is very limited now.
Spot lithium prices: a bottoming formation is starting
The spot lithium market’s epic decline from 600k:t to its present value of 71.5k/t has caught the attention of every commodity investor.
A compelling narrative emerges as we examine the spot lithium price graph shown below, updated in September of 2024 — a possible bottoming pattern is in the making.
Could this chart reflect a spot lithium price bottom, hinting at early signs of a bottoming formation which offers long term investors epic opportunities?
September 13th, 2024 – The downside on this lithium price graph looks limited. While we don’t expect an imminent price surge, we do believe that a relief bounce will take place in 2024 and 2025.
Lithium futures: the epic crash should come to an end
The lithium landscape experienced a massive decline, and lithium futures got hit hardest.
While such a decline created a lot of damage, it also comes with opportunity:
Many lithium miners have been hit unusually hard, with stock price declines of more than 95%. Many of those lithium miners have a lot of potential to grow over time.
The lithium market is characterized by epic under-valuations.
September 13th, 2024 – We expect this lithium price crash in futures to end anytime soon.
The lithium market in 2024 & 2025
- 2024: The epic crash in the lithium market should be largely over now. The price decline is overdone. The charts shown above suggest that there is enough damage done for investors to see value again, and start picking up quality at highly discounted prices.
- 2025 and beyond: As we look into 2025 and beyond, remember that the lithium market thrives on its cyclical nature. The fluctuations we have witnessed are a characteristic of commodities, but the declines wer exaggerated. 2025 should be a year of a large bottom formation followed by a slower uptrend in 2026, maybe starting in 2025.
A niche lithium market trend to become booming business?
In 2023, we discovered the DLT technology, a niche trend in the lithium market.
Could this trend finally start growing, in 2025 and beyond, eventually turn into booming business?
It’s very early to confirm this, but we recommend keeping a very close eye on this trend. It might be THE big trend in the next lithium bull market.
We believe that, as soon as an uptrend returns in the lithium market, companies that implement DLT extraction (DLT tech) will outperform their peers.
