How did the price of an essential element of the green revolution drop so much? | The Business

Lithium prices peaked in late 2022, as Chinese battery manufacturing rapidly expanded, and electric vehicle sales accelerated. The extra demand led to new mines opening in China, Africa and Latin America. But that extra supply, combined with a slower uptake of EVs, sent spodumene prices tumbling. The financial pain of declining prices was revealed by major producers during earnings season. Profits were down across the board as companies grappled with prices that had dropped by more than 50 per cent in just 12 months. Mineral Resources managing director Chris Ellison told investors he had seen many downturns in the past, but this one stood out. Other Australian miners say volatile price swings are part of the growing pains of an emerging industry. Despite the low prices, some miners are expanding production because of mandates around the world to phase-out internal combustion engine vehicles and renewable energy targets.
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