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Amidst declining values in the lithium market, ASX-listed companies such as Allkem Ltd (ASX:AKE), Core Lithium Ltd (OTC:) (ASX:CXO), Liontown Resources Ltd (ASX:ASX:), and Pilbara Minerals Ltd (ASX:PLS) are facing significant pricing pressures. The industry has seen a sharp decline from last year’s peak levels, with lithium carbonate plummeting from a high of $59,868/tonne in 2022 to the current spot prices of $17,076/tonne. Lithium hydroxide and spodumene have also experienced steep drops, with current rates at $14,663 and $1,580 per tonne, respectively.
Looking ahead, Goldman Sachs anticipates a continued downturn in lithium prices. For 2024, projections suggest lithium carbonate could decrease to $13,377 per tonne, hydroxide might fall to $14,263 per tonne, and spodumene is expected at $1,250 per tonne.
As the sector navigates through this challenging phase, the focus is turning towards operational efficiency and innovation to weather the subdued market conditions. The outlook beyond 2024 suggests that the market may experience a turnaround phase after reaching its bottom. Companies within the lithium industry are being monitored closely by shareholders as they strategize to emerge successfully post-2025 from what is forecasted to be an extended period of low lithium prices.
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