Batteries, metals and a supercycle

Lithium prices have softened this year, but the market balance is impacted by multiple developments

The energy transition will require a bevy of metals — steel, aluminium, copper, lithium, nickel, cobalt, rare earths, silver and manganese — and the supply for most is constrained. Lithium is often at the centre of conversations, as are the deals that car companies are signing up with mining companies.

General Motors announced an equity investment of $650 million in Lithium Americas to develop the largest US lithium deposit in January. That could support production of up to 1 million electric vehicles (EVs). Production is expected to begin in the second half of 2026. Ford sealed a pact with Liontown