After an active start to the year in terms of lithium prices, the market has started to stabilize in recent weeks. That is down to a combination of buyers refraining from chasing prices higher, suggesting a degree of destocking, and also as higher prices and a swing round in premiums between different lithium materials have created incentives for convertors to provide what the market wants.
Transforming the lithium supply chain
But, while price activity may have slowed, activity in the lithium industry has picked up. We expect that will now become the norm as the supply chain repositions itself to match supply to demand. The latter is likely to grow at an ever-faster pace as government incentives, government CO2 penalties, consumer choice and general market acceptance that change is upon us, merge to accelerate the move to electrification.
Cadence Minerals plc (LON:KDNC) provides mining services. The Company focuses on finding lithium and other technology minerals in new places, as well as offers extracting services.