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What Oversupply? CBA Analyst Says EV Supply Chain Still Screaming for More Lithium

CBA says level of pressure on lithium supply is huge out to 2030 High lithium prices could be the catalyst…

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This article was originally published by Stockhead
  • CBA says level of pressure on lithium supply is huge out to 2030
  • High lithium prices could be the catalyst for new battery chemistries
  • Core Lithium progresses development of Finnis project in the NT

 All your ASX lithium news for Tuesday, June 21.

 

A few weeks back Goldman Sachs, and then Credit Suisse – both well respected investment banks – released reports forecasting imminent oversupply in the lithium space.

Lithium stocks were hammered. In the ensuing weeks, however, industry experts and fellow investment banks have come out to counter these claims.

Among them was Benchmark Mineral Intelligence who gave four reasons why Goldman Sachs is wrong, and why the lithium market will remain in structural shortage until 2025.

And now CBA director mining and energy economist Vivek Dhar has added his forecasts to the debate.

On the conflicting views, Dhar says if you look at other research houses like Wood Mackenzie, they say we’ll need roughly 30-40% more lithium supply by 2030.

“If you look at what you need to hit 1.5 °, you actually jump up your uncommitted new supply by 2030 closer to 150% – so the level of pressure on lithium supply is huge,” he said.

“And to say that we’re going to have a hiccup when the EV supply chain is just screaming for more materials, it’s hard for me to see how that stacks up.”

Dhar pointed to the fact that major EV players like Tesla and BYD have looked at buying upstream, so there’s a link now between downstream and ensuring upstream supply.

“I think that the idea that we’re going to move away from lithium because the demand side falls away is very challenging to see in this environment,” Dhar said.

 

Source: Wood Mackenzie.

 

Prices could be the chemistry catalyst

“Prices are very strong, and it will likely moderate because we’ll hit a point where it just becomes unprofitable, but I think the first thing that will change is the battery chemistries,” Dhar said.

He expects rising lithium prices – along with nickel and cobalt – will be the catalyst to evolve the type of battery chemistries used.

 

Here’s how ASX lithium stocks were tracking today:

Lithium stocks missing from our list? Shoot a friendly mail to [email protected]

 

 
 
Code Company Price % Month % Week % Today Market Cap
AML Aeon Metals Ltd. 0.024 -33% -11% 14% $20,813,757.78
RGL Riversgold 0.03 -39% -12% 11% $20,422,151.97
BNR Bulletin Res Ltd 0.1325 -32% -2% 10% $34,810,932.00
RMX Red Mount Min Ltd 0.0055 -31% -8% 10% $8,211,819.29
1MC Morella Corporation 0.0175 -38% -3% 9% $82,819,423.78
M2R Miramar 0.082 -34% -25% 9% $4,813,999.73
RDT Red Dirt Metals Ltd 0.355 -36% -21% 9% $98,980,188.45
TEM Tempest Minerals 0.039 -39% -13% 8% $18,171,582.34
QXR Qx Resources Limited 0.026 -46% -19% 8% $20,624,695.70
KGD Kula Gold Limited 0.027 -18% -10% 8% $5,379,390.80
LIS Lisenergylimited 0.4525 -26% -5% 8% $69,683,958.54
SYA Sayona Mining Ltd 0.14 -50% 0% 8% $1,071,522,420.28
ALY Alchemy Resource Ltd 0.016 -43% -11% 7% $14,296,110.86
TKM Trek Metals Ltd 0.064 -12% -18% 7% $18,636,609.00
MQR Marquee Resource Ltd 0.066 -37% -20% 6% $19,340,806.07
MRR Minrex Resources Ltd 0.035 -36% -13% 6% $33,287,611.80
SRI Sipa Resources Ltd 0.038 -5% -3% 6% $7,380,892.91
ZNC Zenith Minerals Ltd 0.285 -21% -22% 6% $92,854,121.85
FTL Firetail Resources 0.29 -11% -16% 5% $16,990,187.50
BMM Balkanminingandmin 0.2 -26% -11% 5% $6,222,500.00
G88 Golden Mile Res Ltd 0.04 -27% -20% 5% $7,741,839.33
ASN Anson Resources Ltd 0.105 -9% -9% 5% $102,791,233.50
QPM Queensland Pacific 0.105 -38% -16% 5% $156,361,313.10
AOU Auroch Minerals Ltd 0.07 -21% -19% 4% $24,753,270.53
PAM Pan Asia Metals 0.475 -3% 1% 4% $33,514,683.02
INR Ioneer Ltd 0.385 -29% -13% 4% $773,780,785.40
FRS Forrestaniaresources 0.135 -41% -16% 4% $3,652,844.52
GSM Golden State Mining 0.046 -34% -12% 3% $5,180,748.70
LRS Latin Resources Ltd 0.062 -56% -13% 3% $115,803,824.28
AGY Argosy Minerals Ltd 0.325 -20% -16% 3% $427,133,250.81
AKE Allkem Limited 10.095 -23% -7% 3% $6,249,049,242.80
RIO Rio Tinto Limited 104.54 -4% -10% 3% $37,711,855,180.26
ESS Essential Metals Ltd 0.355 -35% -17% 3% $85,038,161.63
NVA Nova Minerals Ltd 0.585 -9% 4% 3% $102,715,302.45
VUL Vulcan Energy 5.55 -26% -14% 3% $712,199,936.90
MM1 Midasmineralsltd 0.2 -34% -20% 3% $10,615,434.38
A8G Australasian Metals 0.205 -44% -20% 3% $8,234,098.80
NMT Neometals Ltd 0.9375 -29% -12% 2% $501,764,402.34
PLS Pilbara Min Ltd 2.09 -27% -7% 2% $6,072,770,703.36
WR1 Winsome Resources 0.21 -52% -33% 2% $27,698,368.77
IGO IGO Limited 10.58 -9% -7% 2% $7,822,576,508.29
RAS Ragusa Minerals Ltd 0.088 10% 0% 2% $10,813,309.42
MLS Metals Australia 0.047 -55% -18% 2% $24,289,664.79
AZL Arizona Lithium Ltd 0.095 -39% -14% 2% $207,642,886.72
LPD Lepidico Ltd 0.0255 -12% -9% 2% $162,679,288.33
ZEO Zeotech Limited 0.052 0% -12% 2% $77,770,688.97
AS2 Askarimetalslimited 0.27 -49% -14% 2% $11,022,481.55
EUR European Lithium Ltd 0.055 -31% -18% 2% $74,677,336.34
MNS Magnis Energy Tech 0.305 -25% -12% 2% $289,945,598.70
LIT Lithium Australia 0.071 -17% -12% 1% $72,478,368.97
MIN Mineral Resources. 48.99 -18% -14% 1% $9,140,313,208.77
GLN Galan Lithium Ltd 1.085 -25% -9% 1% $325,707,317.34
GL1 Globallith 1.2 -32% -15% 1% $188,057,433.36
PNN Power Minerals Ltd 0.405 -29% -12% 1% $24,601,398.40
CRR Critical Resources 0.0455 -46% -16% 1% $66,960,685.76
AZI Altamin Limited 0.096 0% 1% 1% $37,213,091.44
CAI Calidus Resources 0.635 -27% -7% 1% $254,030,904.54
LTR Liontown Resources 1.02 -22% -9% 0% $2,225,108,575.97
ADV Ardiden Ltd 0.008 -33% -11% 0% $21,346,682.85
AVZ AVZ Minerals Ltd 0.78 0% 0% 0% $2,752,409,203.44
INF Infinity Lithium 0.125 -7% -11% 0% $51,876,633.25
FFX Firefinch Ltd 0.225 -76% -17% 0% $265,779,724.73
PLL Piedmont Lithium Inc 0.695 -19% -6% 0% $366,661,706.00
RLC Reedy Lagoon Corp. 0.017 -37% -6% 0% $9,476,257.50
TON Triton Min Ltd 0.022 -19% -19% 0% $27,693,251.89
LEL Lithenergy 0.72 -41% -20% 0% $32,508,000.00
ARN Aldoro Resources 0.145 -34% -17% 0% $14,385,970.41
CHR Charger Metals 0.39 -32% -14% 0% $12,706,603.65
AAJ Aruma Resources Ltd 0.067 -17% -4% 0% $10,516,420.70
AM7 Arcadia Minerals 0.19 -19% -17% 0% $8,872,599.48
EMS Eastern Metals 0.125 -42% -17% 0% $4,450,000.00
IMI Infinitymining 0.14 -13% -10% 0% $8,050,000.00
MMC Mitremining 0.12 -17% -8% 0% $3,250,212.00
SHH Shree Minerals Ltd 0.008 -24% 0% 0% $9,777,895.14
TMB Tambourahmetals 0.14 -36% -22% 0% $5,766,963.72
TSC Twenty Seven Co. Ltd 0.003 -25% -14% 0% $7,982,441.72
WCN White Cliff Min Ltd 0.016 -24% -11% 0% $10,457,653.79
WML Woomera Mining Ltd 0.018 -14% -10% 0% $12,362,995.19
MTM Mtmongerresources 0.105 -32% -30% 0% $3,807,303.47
SCN Scorpion Minerals 0.072 -28% -9% 0% $23,891,845.82
ENT Enterprise Metals 0.011 -27% -15% 0% $7,091,115.41
KAI Kairos Minerals Ltd 0.02 -26% -9% 0% $39,241,869.82
STM Sunstone Metals Ltd 0.038 -32% -25% 0% $97,828,963.88
PGD Peregrine Gold 0.39 -20% -11% 0% $14,931,800.91
AVW Avira Resources Ltd 0.004 0% 0% 0% $8,475,160.00
EFE Eastern Resources 0.023 -41% -15% 0% $22,872,042.51
SRZ Stellar Resources 0.017 -29% -11% 0% $14,268,144.64
AOA Ausmon Resorces 0.006 -25% -14% 0% $5,143,736.06
VKA Viking Mines Ltd 0.007 -22% -13% 0% $7,176,809.02
VMC Venus Metals Cor Ltd 0.16 -9% -6% 0% $24,172,589.28
EPM Eclipse Metals 0.021 -22% -9% 0% $40,343,654.67
DRE Dreadnought Resources Ltd 0.042 5% 14% 0% $119,224,709.14
XTC Xantippe Res Ltd 0.008 -27% -11% 0% $61,544,455.19
LRD Lordresourceslimited 0.18 -45% -18% 0% $5,541,231.78
AUN Aurumin 0.125 -34% -24% 0% $13,652,906.50
KTA Krakatoa Resources 0.053 -30% -17% 0% $18,269,625.60
TYX Tyranna Res Ltd 0.016 78% 0% 0% $24,517,770.67
DAF Discovery Alaska Ltd 0.05 -23% -7% 0% $11,211,734.90
IR1 Irismetals 0.29 -54% 5% 0% $17,291,250.00
DAL Dalaroometalsltd 0.095 -30% 16% 0% $2,838,125.00
CY5 Cygnus Gold Limited 0.155 -3% -9% 0% $18,287,723.83
PSC Prospect Res Ltd 0.965 2% 1% -1% $432,296,591.33
JRL Jindalee Resources 2.83 -22% -7% -1% $163,530,053.10
GT1 Greentechnology 0.69 -19% -17% -1% $109,693,240.00
KZR Kalamazoo Resources 0.2275 -35% -19% -1% $33,394,706.02
LPI Lithium Pwr Int Ltd 0.37 -37% -14% -1% $130,929,318.00
MXR Maximus Resources 0.046 -38% -23% -2% $14,941,571.10
RAG Ragnar Metals Ltd 0.039 -9% -13% -3% $15,167,395.56
NWM Norwest Minerals 0.028 -39% -20% -3% $5,237,614.22
EMH European Metals Hldg 0.64 -35% -24% -4% $93,616,681.73
EVR Ev Resources Ltd 0.025 -44% -19% -4% $24,075,585.85
MMG Monger Gold Ltd 0.24 -21% -4% -4% $10,010,000.00
CZL Cons Zinc Ltd 0.019 -17% -14% -5% $7,267,156.26
CXO Core Lithium 1.02 -24% -18% -5% $1,862,279,608.30
THR Thor Mining PLC 0.009 -31% -25% -5% $10,139,359.24
BYH Bryah Resources Ltd 0.033 -27% -13% -6% $7,917,251.13
LNR Lanthanein Resources 0.015 -46% -17% -6% $13,405,209.12
LRV Larvottoresources 0.215 -32% -10% -7% $9,552,475.00
GW1 Greenwing Resources 0.21 -36% -18% -9% $28,346,890.27
AX8 Accelerate Resources 0.028 -24% -15% -10% $8,167,225.87
WC8 Wildcat Resources 0.027 -21% -16% -10% $19,358,181.81
WMC Wiluna Mining Corp 0.275 -43% -43% -11% $109,936,225.35
DTM Dart Mining NL 0.051 -30% -22% -12% $7,845,089.28
TKL Traka Resources 0.007 -13% -13% -13% $5,510,196.49
FG1 Flynngold 0.105 -28% -19% -13% $7,687,326.00
IPT Impact Minerals 0.007 -30% -13% -13% $19,850,964.45
LKE Lake Resources 1.185 -22% -15% -13% $1,824,460,018.09
LSR Lodestar Minerals 0.006 -40% -14% -14% $12,169,061.44

 

A total of 57 stocks were in the green today, 44 flatlined and 27 were in the red.

 

Who’s got news out today?

CORE LITHIUM (ASX:CXO)

Near term miner Core says it remains on track to ship first spodumene concentrate from the Finniss project in the NT by the end of CY 2022 – subject to the successful ramp-up of the Grants open pit, DMS plant and crusher and no further COVID-19 or weather-related delays.

The company says the mining rate has increased at the Grants Stage 1 open pit – which will be the initial source of ore for the DMS plant until BP33 and other mines are bought online – and construction activities for the DMS plant has commenced.

Core also expects to complete a reserve and resource upgrade for the project in the coming weeks.

 

 

The post Eye on Lithium: What oversupply? CBA analyst says electric vehicle supply chain still screaming for more lithium appeared first on Stockhead.

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