![Lithium abstract concept](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1331663482/image_1331663482.jpg?io=getty-c-w750)
Olemedia/E+ via Getty Images
Weak lithium pricing cannot support new investments in plants for the metal, says a top Albemarle (NYSE:ALB) executive said Tuesday, according to Bloomberg.
“Lithium prices we’re facing at these levels are concerning,” and investors should not pour money into lithium facilities at these levels, Eric Norris, head of Albemarle’s (ALB) energy storage business, told the Fastmarkets Lithium Supply and Battery Raw Materials Conference in Las Vegas.
“But I believe the energy transition is inevitable,” because of strong demand growth from electric vehicles, Norris also said. “Our long term demand projections [for lithium] are just as robust that they’ve always been.”
Lithium prices have fallen further this month after a temporary rebound, with inventories piling up due to weak EV demand.
Spot prices of lithium carbonate in China recently tumbled to their lowest since August 2021, and most-active futures on the Guangzhou exchange have lost 12% so far this month; in Albemarle’s (ALB) latest auction on June 19, the winning bid was down 6.9% from the previous sale on June 5.
Rising lithium production and expectations of a summer lull are weighing on prices, and upward drivers have “mostly disappeared,” Rystad Energy analyst Susan Zou recently told Bloomberg.
Albemarle (ALB) shares recently suffered a 10-session losing streak, and have fallen 27% in the past month and 37% YTD.
ETF: (LIT)