Lithium prices fall significantly after two years. Decline does not threaten new mining projects and makes electric vehicle production cheaper

According to Benchmark Mineral Intelligence, the price of lithium carbonate has fallen by more than 65% since January, following two years of sharp increases. Prices are also falling for other metals used in batteries, such as cobalt and nickel. Mining companies are nevertheless unconcerned by the decline and continue to expect healthy profits, as demand is growing steadily, driven in particular by the expansion of electric mobility.  

Lithium prices have fallen by more than half since November, with the decline accelerating further in recent weeks. The price has plunged since the end of last year due to weak demand for electric vehicles in China, the world's largest market. Many analysts point to the scrapping of electric vehicle subsidies in this context.

"Chinese demand collapsed in January this year, causing such panic that prices, which were more than ten times production costs, fell dramatically,"said mining industry analyst Jean-Charles Cachon. Other industry experts, however, note that the decline shows mining and processing companies can respond to conditions in the lithium market more quickly than had been thought possible.