Chris Berry: Supply Volume Key for Lithium Companies Right Now

Lithium Investing
lithium-ion batteries on yellow background
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Investors interested in lithium stocks should pay more attention to supply volume right now than prices, said Chris Berry of House Mountain Partners.

Chris Berry: Supply Volume Key for Lithium Companies Right

After a bright year for lithium, investors in the battery metals space are focused on what's ahead for the key electric vehicle raw material. With 2022 coming to a close, the Investing News Network caught up with Chris Berry of House Mountain Partners to get his thoughts on what 2023 may look like for lithium.

“I don't think any of us in the sector would have gone back to the end of 2020 and said, ‘You know what, over the next two years, lithium pricing is going to increase by 900 percent’, which is precisely what has happened,” Berry said. “I would argue that going forward, I think you could see stagnant lithium pricing, maybe some slight downside.”

When asked if anything could derail the lithium story next year, Berry said it's a possibility if electric vehicle sales fall off a cliff, if policy supports in the form of subsidies are withdrawn or if there is some sort of major global COVID-19 resurgence.

“Something like that really would just absolutely crush demand,” he said. “Now, the good news is, the likelihood of any combination of any of those factors I just laid out, I would say is quite slim.”

Speaking about the lithium market going forward, Berry said it's become less of a price game.

“In other words, you're not investing in these companies betting on higher prices to pull the valuations up. I think lithium is a volume game right now,” he explained. “The success or lack thereof of (certain) companies in terms of bringing supply on stream will really determine lithium pricing going forward.”

Berry also shared his insight on the entire battery metals market and which commodities he will be watching next year aside from lithium. Listen to the interview above to learn more of his thoughts.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.


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