The rally in lithium has more room to run, say commodity analysts at Wall Street brokerage Bernstein.
Following several down years, lithium’s price has staged a comeback in 2026, more than doubling from the lows seen last year.
Bernstein says the rally is far from peaking and has legs to continue running.
Analysts argue that tightening lithium supplies and strong battery demand are creating conditions for prices to climb well into 2027.
Lithium is a critical raw material used in electric vehicle batteries and energy storage systems, meaning its price impacts battery manufacturers, automakers, and renewable energy firms.
Lithium’s price has rebounded from a low of $8,000 U.S. per tonne in mid-2025 to as high as $30,000 U.S. in May of this year.
According to Bernstein, lithium demand has risen 32% year-to-date, outpacing supply growth of roughly 24%.
That imbalance has sharply reduced inventories. Bernstein estimates lithium inventory levels have fallen to roughly 20 days of supply, a level that coincides with stronger pricing.
As such, Bernstein raised its lithium price forecast to $25,000 U.S. per tonne for this year from $21,000 U.S. previously, and to $32,500 U.S. in 2027 from $25,000, U.S.
Lithium is currently trading at $22,400 U.S. per metric ton.
