Lithium sector slips as Goldman Sachs sees EV battery oversupply

Lithium Ionic

15/11/2022 16:54

** Shares of lithium producers fall after Goldman Sachs
analyst Nikhil Bhandari and team lower price estimate for global
lithium batteries by ~10%
    ** Post-2025, global surplus of EV batteries that use
lithium will deepen as countries incentivize production to catch
up with China's lead, and China continues to expand capacity -
brokerage    
    ** Albemarle  ALB.N , Sigma Lithium  SGML.O , Piedmont
Lithium  PLL.O  and Livent  LTHM.N  lose 6.5%-9%
    ** U.S. shares of Chilean lithium giant SQM  SQM.N  slip
2.4%; U.S. and Canadian shares of Lithium Americas  LAC.N 
 LAC.TO  down ~4% each
    ** Standard Lithium  SLI.V  and Lithium Ionic  LTH.V  dip 3%
and 2.6%, respectively
    ** Global X Lithium & Battery Tech ETF down 1.2%
     ** Australian lithium miners Core Lithium  CXO.AX , Allkem
 AKE.AX , Pilbara Minerals  PLS.AX , Lake Resources  LKE.AX  and
Mineral Resources  MIN.AX  closed 5-16% lower on Tuesday
    ** In a separate note last week, GS analysts led by Aditi
Rai had said they expect pressure on lithium prices to build
from H2 2023 as supply will overtake demand
 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))