The lower prices may provide some cost relief for automakers and might lead to cheaper electric vehicles for consumers. Prices for lithium, nickel and cobalt are also expected to remain low for the time being.
According to consultancy Benchmark Mineral Intelligence, there will be an oversupply of the three metals in the coming years. The nickel and lithium markets will not show a shortage until 2027 and 2028, according to the agency. Demand for cobalt will exceed supply from 2026.
But there are also risks for the prices of the metals. For example, Citigroup recently warned that there is a greater chance that Indonesia, which produces more than half of the world’s nickel, will take steps to raise prices. In addition, China plans to increase its strategic stockpiles of cobalt, which is also important in the defense and space industries.