Albemarle, other lithium names extend losses on weak pricing as EV demand cools (NYSE:ALB)

Albemarle (NYSE:ALB) closed -6.3% and Lithium Americas (NYSE:LAC) -6% to lead lithium miners (LIT) broadly lower in Monday’s trading, as Chinese prices for lithium carbonate have dropped 20% so far in November and 75% YTD.

Among other lithium names, Sigma Lithium (SGML) settled -3.9%, American Lithium (AMLI) -3.5%, Livent (LTHM) -2.5% and SQM (SQM) -2.2%.

A supply glut has weighed on prices in 2023, and the Benchmark Mineral Intelligence consultancy forecasts the global lithium market will not return to deficit until 2028; high interest rates also are leading to uncertainty over global demand for electric vehicles, with some automakers rethinking their strategies.

SQM (SQM) said earlier this month it expected the downward lithium price trend would continue for at least the rest of this year.

The lithium market is facing surpluses in the near term that could lead prices to undershoot expectations, UBS analyst Dim Ariyasinghe said, although there are a “myriad of signals at play in the lithium market” and “with the market still looking to grow 3x-4x over the next decade, we still like the space with potential opportunities emerging at the low-end of the cost curve.”