Lithium market struggles to recover after epic boom and bust
A stuttering recovery in lithium prices is providing a fresh reminder of why the dramatic rally of recent years was followed by an even more breathtaking collapse: a fast-expanding industry that is more prepared than ever to keep pumping out supplies.
Prices have bottomed out but have struggled to meaningfully rebound, partly because miners, refiners and carmakers are still working through a mound of surplus stock clogging up the supply chain. And while some projects and mines were hurt by the pricing plunge, several of the biggest producers insist they’ll keep expanding into the glut, further clouding the outlook for an eventual recovery in prices.