A recovery in demand for electric vehicles should help stem a drop in lithium prices in the second quarter, Morgan Stanley said in a note. Lithium prices have slumped 37% to $45,600/mt in the past three months due to stagnant lithium demand and rising inventories of lithium carbonate in some Asian countries, analysts at the bank said. However, the bank expects the decline in lithium prices to moderate in the second quarter as demand for electric vehicles recovers moderately, especially in China.