Joe Lowry: Debunking the Lithium “Oversupply Myth”

Many market participants would agree that lithium oversupply fears have been a main factor impacting the space this year. In fact, and despite the positive demand narrative, share prices have not performed as expected, with many juniors taking a hit after Morgan Stanley (NYSE:MS) released a report predicting lithium prices would fall by 2021.

At this year’s Cathodes event in Newport Beach, the Investing News Network sat down with lithium expert Joe Lowry, president of Global Lithium, to discuss the lithium “oversupply myth,” what’s his take on demand and what to expect in the lithium sector next year.

Speaking about the reports published earlier this year about lithium, Lowry said the “tsunami of supply” predicted by some has not happened yet, and explained where he thinks the confusion is coming from.

He also mentioned prices as another of the big challenges in the lithium space this year.

“One small parameter [of lithium prices] is what goes on in China in the spot market,” he said, adding that this year, “the investment community fixated on Chinese lithium prices going down.”

According to Lowry, the positive surprises in 2018 have been on the demand side, as demand is still robust in Asia.

The expert also discusses where he thinks supply will come from in the next 3 to 5 years, and shares his thoughts on hard rock and brine projects.

“Existing players will continue to need expansions, developments or will need to acquire juniors or interest in juniors,” he said.

Lowry also talks about new battery technology, financing and gives his best suggestion for investors looking to jump into the lithium space.

Listen to the interview above for more insight from Lowry, who also talks about what’s ahead for the lithium podcast in season 2. You can also click here to listen to our full Cathodes interviews playlist on YouTube.

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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.