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Howard Klein: The Real Turning Point for Lithium Will Happen After 2025
Howard Klein, founder of RK Equity and author of the Lithium-ion Bull newsletter, shares his thoughts on lithium supply and demand, investor’s sentiment and the future of the lithium market.
At this year’s Lithium Supply and Markets conference in Las Vegas, the Investing News Network had the chance to catch up with Howard Klein, founder of RK Equity and author of the Lithium-ion Bull newsletter, to discuss the current trends in the lithium sector.
“Demand continues to be strong and supply is just not as fast and we need it to be faster, but there are challenges in bringing it online,” said Klein, explaining how 2030 has become the new 2025 in the space.
“A lot of the lithium forecasts have been focus on 2025 and that started about two or three years ago, but now we’re getting closer to 2030. And I think that’s important because the real inflection point and the uplift will happen post 2025,” he added.
Speaking about how the market has performed so far this year, Klein said he did not expect the market to fall as much as it has, but estimates that will reverse in the second half.
One of the catalysts that could bring investors optimism back to the market might be the much awaited FMC’s (NYSE:FMC) lithium business initial public offering (IPO). According to Klein, the fact that FMC is Argentina-focused might be a challenge, due to potential economic uncertainty in the country.
As a result, Klein speculates that FMC might need to price the IPO slightly lower, “[but if they do] it will just enable investors to invest in an IPO to make more money and if they make more money they’ll be have a greater appetite to invest in other lithium companies,” he added.
Listen to the interview above for more insight on lithium from Klein, including the hydroxide advantage, prices and what factors to watch out for in the next months that could impact the market.
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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 contributed article. 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.