Lithium Investment 2023 7 Action Packed Predictions Now

After a shocking 2022, most investor are asking if lithium investment will stay the course in 2023?

Against historic economic volatility in 2020-2021, the deepest global downturn on record. Then followed by the strongest rebound in 2022 the markets demonstrated stable growth.

However this year remains remarkably turbulent, with the global economy hit by multiple adverse shocks. For example, global supply and demand issues, a third major wave of COVID-19 to Russia’s invasion of Ukraine.

As a result of all this market volatility making reliable predictions is better left to the magic 8 ball. But Blue Sky Lithium offers 7 action packed predictions about the 2023 lithium market.

** This article is for entertainment purposes and in no way to be taken as investment advice by anyone. All readers are encouraged to perform their own due diligence.**

Lithium Investment 2023 7 Action Packed Predictions Now

1. Lithium Price Stays Near Record Levels

The prices of Lithium in China continue close to new record highs heading into the final week of 2022. With the price of Lithium price hitting the all time high in mid November around $80,000 per ton, a 200% increase. But the lithium market is down to only 100% gains for 2022.

Additionally adding upwards price pressure in the short term. The main pressure is reducing lithium output from domestic Chinese brines producers over the upcoming winter.

Furthermore increasing supply delays and steady demand climbing, lithium prices are expected to remain at high levels in 2023 and the next few years.

2. Tightening Lithium Investment Market

Consequently as the demand for EVs is surging, so is the need for lithium to power its batteries. But lithium supply can not keep up with the overwhelming market demand.

Furthermore the lithium market is still facing a deficit of 605,000 tons of LCE by 2030. For example if capital investment falls short of the required $37.8 billion, according to S&P Global.

3. Demand Only Increasing

Blue Sky Lithium Mining sees lithium prices with strong support in 2023. Additionally lithium supply expecting to remain tight amid bullish demand from the accelerating adoption of electric vehicles across the globe.

For example the International Energy Agency estimates that 6.6 million EVs were sold last year. Even with automakers facing supply chain constraints and production challenges, this number will only keep increasing.

For its part, BloombergNEF sees passenger EV sales rising to 21 million units in 2025. 

However some price correction should be expected, led by a slowdown in the Chinese market.

The S&P Global Commodity Insights, price seaborne lithium carbonate at $75,000/mt CIF North Asia up 122%. Lithium hydroxide $81,000/mt CIF North Asia Dec. 20, up 156%, respectively, since the start of 2022.

Additional South American lithium producer Blue Sky Lithium Mining executives in a year end conference call Dec. 15 said is ruling out locking in fixed lithium prices. As BLSX negotiates long-term supply contacts with consumers, saying it will continue to use indexed contracts to benchmark its prices.

4. West Rethinks Electric Energy Strategy

The race is on for western countries specifically the United States to produce more lithium.

With net zero carbon goals, soaring gas prices for the Russian-Ukraine war and OPEC. The west and the United States has to face the hard facts they are behind on the lithium race.

The west is also placing huge value on large electric batteries. If an American wants to drive their EV over 6 hours on one charge then thats what they will get.

The U.S. needs far more lithium to achieve its clean energy goals — and the industry that mines, extracts and processes the chemical element is poised to grow.  However  lithium reserves are distributed widely across the globe, the U.S. is home to just one active lithium mine, in Nevada. 

For example most the world’s lithium comes from South America, Australia. While China dominates the worldwide supply chain for lithium-ion batteries.

The U.S. produces less than 2% of the world’s supply of lithium, although it has about 4% of the reserves. The largest reserves in the world are in Chile.

If the U.S. and the rest of the west wants to keep pace with the green energy revolution they have to invest billions of dollars into lithium mining and production.

5. Lithium Investment Market Chaos and Russian Invasion

You don’t have to be a fortune teller to predict the next few years of the lithium market guarantees a heavy dose of chaos.

The lithium market faces a mélange of macroeconomic events upon which the growth of the lithium industry is taking place. For this reason it is very hard to predict the lithium market moving forward. However Blue Sky Lithium is very bullish on 2023 based on the large volume of order requests we are receiving daily.

We are just at the start of the battery supercycle with high demands and limited supply. In a word the lithium market will be full of excitement and chaos for the better.

Then add the Russian invasion to the mix lithium mix and chaos is the just the beginning. For example the Russian invasion is putting the worlds green energy progress into jeopardy. Since the start of the invasion the price of car battery metals has is up over 50%.

Volkswagen, the second largest producer of electric automobiles only behind Tesla. Incidentally Volkswagen is so far production of EV for 2022 they should just put up a “sold out”sign on the door.

6. Rise of the “Lithium Cartel” 2023

Rumors of South Americas largest lithium producers, Argentina, Chile and Bolivia are in OPEC like talks to form the worlds first “lithium cartel”.

The foreign ministers from the three countries also hoped to have Australia, the world’s top lithium producer, join the cartel, along with Brazil the new “lithium Safe haven”.

Additionally “Lithium Triangle” region is made up of Chile, Bolivia and Argentina. These three countries hold 58% of the world’s lithium resources, according to the 2021 U.S. Geological Survey Mineral Commodity Summary. 

If the lithium cartel is created, it could mean higher costs for lithium. This would then be passed down to EV buyers.

The positive for the creation of a lithium-OPEC reflects greater commitment from the respective governments to further develop their lithium resources, and supply chains.

7. Lithium Investment Opportunities 2023

The future is being powered by lithium. Additionally the the sector needs $42 billion of investment to meet the anticipated level of orders by the end of the decade.

Furthermore the lithium industry will need to receive about $7 billion of investment each year from now until 2028 to be able to deliver level of need by the end of the decade.

With this type of demand outlook, investors are becoming more interested in the metal. Here are four ways to invest in lithium:

• Lithium futures.
• Lithium stocks.
• ETFs.
• Private Investment

At Blue Sky Lithium Mining we are excited about the future of the lithium markets growth of clean energy.

We are always here to answer questions feel free to contact us.