The price of %Lithium rebounded in July, gaining 15.73% during the month amid strengthening sales of %ElectricVehicles and supply curtailments in China.
Prior to July, lithium’s price had been in freefall due to a global oversupply as producers refused to reduce their output while waiting for prices to recover.
Lithium is a key ingredient in electric vehicle batteries and the price of battery-grade lithium rose 14.7% in July. That was a big rebound from a decline of 27.5% in May and June of this year.
Companies that rely heavily on lithium include automakers such as Tesla (NASDAQ: $TSLA), %Toyota (NYSE: $TM), and %GeneralMotors (NYSE: $GM), among others.
Lithium prices rose in July largely due to an optimistic demand outlook in China and as electric vehicle sales improve worldwide.
Global demand for lithium is forecast to grow 80% over the next five years, according to data from S&P Global Markets.
The primary driver of that growth will be electric vehicle sales in China and Europe.
At the same time, lithium prices are being supported by capacity shutdowns across China, including brine production. China represents 5% of the global lithium output.
Lithium’s price is currently at $71,350 U.S. per tonne.
