For some time now, the resource in focus has been lithium. Announcements of gigafactories, which by their very name suggest such vast scales have made a supply-side investment seem the most obvious move. Share prices have boomed. Albemarle (ALB) and Tianqi, for example, have seen their share prices almost double over the last twelve months. Naturally, following a period of sustained growth, some bearish sentiment has entered into play, and there has been some pull back.
Paul Gait of AB Analysts. Source: barrons.com
Some have even speculated of a resource glut hitting the share price of lithium miners hard. Owing to predictions of worldwide lithium supply and demand, this however does not seem likely in the near term, with (as per Statista.com) supply set to reach 388,458 metric tonnes of carbonate equivalent in 2025, whilst demand ought to outstrip supply at some point between 2024 and 2025. This is of