Lithium Price Explodes Aggressively, Lithium Miners Will Follow


As we work on our annual lithium forecast, part of a series of forecasts for 2023, we notice the price of lithium exploding towards the new ATH. It’s even doing it quite aggressively. This should come as no surprise to InvestingHaven readers, as we’ve long said lithium is the strongest market.

In July, before the start of the summer rally, we wrote that lithium was the only product not affected by the selling pressure. We mentioned that lithium stocks were affected, but not the price of lithium. Our view was that this would be accompanied by an epic buying opportunity in lithium stocks.

At the beginning of September, we continued with this article: Australia looks good but the “big lithium” in Australia looks amazing. The point we made:

The link between Australia and lithium is very simple: the “juiciest” lithium plays in world trade on the ASX. Although there is much more to be found in Australia, in terms of sectors, than lithium, it is important to note that the Australian stock market index is among the strongest in the world. It is trading 10% below its 2021 highs while most other indices are closer to 20% below their 2021 highs. This is certainly related to the fact that the Australian index is rich in green metals for batteries.

Again, this suggests there is a buying opportunity in the lithium miners. Whenever the market decides to set a bottom, we see lithium going up aggressively, but not all of them simultaneously. In our Momentum Investing updates, we cover the “logic” that the lithium market is following, there is structure in the lithium space.

At this time, we can only conclude, based on the “Lithium Spot” chart presented below, that the biggest market opportunity is in the lithium space. There is no market that has such a strong setup, there is no market that is trading at ATH, above the 2021 and 2022 highs.

Our Momentum Investing team is preparing a must-have update on the list of battery green metals we follow, a very in-depth update this time. We are expanding our lithium mining list and bringing the structure and logic that the market follows. Our update will be shared with premium members throughout the week, latest next weekend!


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