As the saying goes – the best cure for high prices is high prices.
According to GS this is now coming to battery metals (cobalt, lithium and nickel).
In other words, despite an exponential demand profile, the surge in prices is bringing on a huge supply response.
“We forecast all three metals to shift into sustained surplus over the next 1-2 years” (see chart).
“Lithium is the most prominent in this trend, where we expect supply growth to average just over 30% per year over 2022-25, reflecting the ramp-up of new projects in Australia, China and Chile in particular.”
