If there is one thing to come out of the commodity market this year, it’s the sheer strength and unstoppable force of the lithium price as countries around the world accelerate their transition to a cleaner, greener economy.
End-user demand for lithium related products, such as electric vehicles and battery storage, has driven the lithium price through the roof with market analysts changing their long-term forecasts for lithium carbonate from US$7,500 – $10,000 per tonne at the start of 2022 to US$15,000 – $25,000 per tonne towards the pointy end of it.
Luke Laretive, CEO of Seneca Financial Solutions, says the bullishness of the sector has essentially doubled over the course of the year.
“This is the real highlight and on the back of that change in sentiment is obviously businesses such as Pilbara Minerals who are making exceptional free cash flow,” he says.
“This activity – whether it’s the free cash flow in the businesses or change in the longer-term assumptions that analysts are making, is really going to drive what takes place next year.”