Proactive’s Tylah Tully gives an outlook for lithium in 2025.
The lithium market faced a challenging 2024, with prices dropping nearly 25% year-on-year due to oversupply.
Policy uncertainties under Donald Trump’s upcoming presidency, including potential rollbacks of EV incentives, could reduce US battery market growth by up to 20%.
However, analysts, including Morgan Stanley (NYSE:MS) and Morningstar, project that lithium prices have likely stabilised, with the market expected to rebalance in 2025 as demand overtakes supply.
Several ASX-listed companies are positioned to benefit from the anticipated recovery.
Livium Ltd (ASX:LIT, OTC:LMMFF) is advancing sustainable lithium production with patented technologies and battery recycling.
Kali Metals Ltd (ASX:KM1) has a vast exploration portfolio across Australia’s lithium-rich regions, focusing on hard-rock lithium fields in Western Australia, New South Wales, and Victoria.
Lightning Minerals Ltd (ASX:L1M) plans drilling in Brazil’s Lithium Valley, where spodumene with grades up to 4.04% lithium oxide has been discovered. The company has acquired key projects in Minas Gerais to secure a foothold in the lithium supply chain.
European Lithium Ltd (ASX:EUR, OTCQB:EULIF) is progressing the Wolfsberg Lithium Project in Austria, aiming to integrate into Europe’s battery supply chain. A recent project acquisition in Ireland highlights its expansion strategy.
Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) is advancing its Paradox Lithium Project in Utah with direct lithium extraction technology, targeting the growing EV battery market.