Allkem sees low lithium prices extending over near term - chair (updated)

Allkem

07/12/2023 02:43

(Adds quotes and comment from the chairman in paragraphs 2-4)
       SYDNEY, Dec 7 (Reuters) - Allkem Ltd  AKE.AX  Chairman
Peter Coleman said on Thursday he sees current low lithium
prices extending for the near term.
    Lithium prices overshot last year driven by China but this
year fresh supply, including from Africa, has led to a collapse
in prices, Coleman said at an event in Melbourne.
        "That's natural. You get a price signal in the market
and everyone runs off to the bank and their investors and says
its time to build a mine," he said.
    "That price signal arrived a few years ago. Now we have to
work that (excess supply) out of the market. We're going to be
here for a little while."
    Lithium prices have fallen amid slowing demand growth for
electric vehicles which has led to a price war among makers in
China and which may remain sluggish for years.

 (Reporting by Melanie Burton; Editing by Christopher Cushing)
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