Government subsidies distort everything, so in news tht should surprise no one, the price of raw lithium has taken a nosedive. Producers scrambled to boost supply on promises of tax credits and electric cars in every garage, but demand for batteries has lagged and with it demand for the soft, silvery-white metal.
Since November, the average price of battery-grade lithium carbonate has plummeted from $84,500 per metric ton to a mere $42,500. That's right, a 50% decline. And here we thought everyone would have a Tesla by now. Let's all take a moment to express our shock and amazement, shall we?
The DAPTake: Lithium futures and Lithium mining stocks have been hot buys for two years and produced some pretty massive returns, but this news could be a leading indicator that the bull run is over.