Lithium’s Low Price Can’t Support Spending on New Plants, Albemarle Says

(Bloomberg) -- Lithium’s low price doesn’t justify new investments in plants for the battery metal, says a top Albemarle Corp. executive.

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The current price of the key battery ingredient is “concerning” and investors shouldn’t put money into lithium facilities at these market levels, Eric Norris, president of energy storage, said Tuesday at an industry conference in Las Vegas.

Lithium prices weakened further this month after a temporary rebound, with inventories piling up as electric vehicle demand signals stay gloomy. Global pricing for the lithium market should be more transparent and Albemarle, the world’s top producer of the metal, is doing its part by hosting more than a dozen auctions so far, Norris said.

Lithium’s long-term demand prospects remain intact as demand from electric vehicles is expected to grow strongly, Norris said.

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