Daniela Desormeaux of SignumBox sees the current lithium price trend as a normalization of the market, not a cause for concern.
At the recent Lithium Supply & Markets Conference, held in Chile, Daniela Desormeaux, founder and CEO of SignumBox, reflected on developments in the lithium space since the event was first held in the country a decade ago.
“If we look back, the industry has changed a lot,” she said. Ten years ago, few electric vehicle (EV) models were available, and there was not yet consensus on which battery technology would be used.
“The industry was looking for the best technology. And also there was concern about lithium availability at that time,” she continued.
Times are certainly different now. “Today there is no concern about lithium availability. We know there is enough, there is plenty of lithium in the world,” she said. “Nobody questions about the use of lithium in batteries for electric cars.”
Despite growing demand from the EV space, lithium prices have been struggling and investor sentiment has seen a downturn. Addressing those issues, Desormeaux said she sees today’s lower prices as a rebalancing of the market,
“New projects in Argentina, in Australia, are coming, expansions in Chile, so new production is coming, so the market is getting balanced. So prices are going down, because it’s like a normalization process.”
Desormeaux sees this trend as a normal progression in the market, not something that is happening because fundamentals in the lithium market are no longer good. “We see this trend on prices like something normal, not something unusual.”
SignumBox’s long-term price projection for lithium carbonate is US$11,000 to US$12,000 per tonne, and slightly higher for lithium hydroxide.
Watch the interview above for more insight from Desormeaux on lithium prices, supply and demand dynamics and battery technology. You can also click here to watch our full Lithium Supply & Markets Conference playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, 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.