Why is the lithium price falling?

    Short answer

    Lithium is falling because supply has surged from Australia, China and South America while EV demand growth has slowed.

    What happened

    Lithium carbonate prices dropped more than 80% from their 2022 highs.

    Why it happened

    Miners raced to open new capacity during the EV boom. Slower EV adoption and cheaper battery chemistries (LFP) have cut demand faster than expected.

    Why investors care

    Lithium miners like Albemarle and SQM have been crushed — a warning about commodity cycles.

    How it affects ordinary people

    Cheaper batteries, cheaper EVs — but pain for miners and mining regions.

    FAQ

    Will lithium recover?

    Long-term EV demand should absorb supply, but a full recovery may take years.

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