The world's largest lithium producers told a major industry conference this week they remain bullish on long-term demand for the electric vehicle battery metal despite the recent price plunge that has forced layoffs and curtailed expansions.
Once a niche metal used primarily in ceramics and pharmaceuticals, lithium demand has grown rapidly over the past decade. But oversupply from China and a softening of aggressive EV adoption rates has dragged lithium prices down more than 80% in the last year.
The mood at the Fastmarkets Lithium Supply and Battery Raw Materials Conference in Las Vegas, the world's largest, reflected a cautious hope among attendees that the industry can meet an expected demand jump later this decade as EVs and battery storage technologies grow more popular.
The conference had roughly 1,100 attendees, in line with last year and nearly triple 2019 levels, organizers said.
"We're really focused on the fundamentals of the underlying business," said Patrick Howarth, head of Exxon's lithium division, which announced at the conference it would expand its lithium production plans in Arkansas. "We're not scared off by low prices, and we're not drawn in by high prices."
https://www.reuters.com/markets/commodities/lithium-producers-bullish-long-term-demand-despite-recent-price-drop-2024-06-28/