Lithium prices set to stabilize in 2025 as mine closures and China EV sales reduce oversupply

Lithium prices are expected to stabilize in 2025 after significant declines over the past two years. Mine closures and strong electric vehicle sales in China are helping to reduce the oversupply of lithium, according to analysts. The global lithium supply glut is projected to decrease from nearly 150,000 tons last year to around 80,000 tons in 2025. China's increased EV subsidies have also contributed to a recent price rally and are expected to support prices moving forward. Analysts predict that prices will stabilize around $11,092 per metric ton in 2025. However, they caution that any significant price increases may be limited due to the potential for closed mines to reopen if it becomes profitable.