In conference calls with investors and analysts in recent days, lithium producers said they viewed the market volatility as short-term, adding that they expected electrification momentum to continue to grow.
"We view what's happening now as a bump in the road, but certainly not a determinant of our long-term growth." Eric Norris, head of Albemarle Energy Storage, told investors on Thursday. The company previously cut its annual forecast and reported disappointing quarterly results.
U.S. lithium producer Livent also said it expected lithium sales to remain strong despite its weak performance. "We believe lithium supply will continue to constrain demand," Livent CEO Paul Graves said.
Australian miner Pilbara Mining said last week that "the market backdrop is softening" and ruled out a share buyback or a special dividend to shareholders. However, executives at the mining company said the decision was taken out of temporary caution. Pilbara executives said demand is definitely there and the current market is still very healthy.
Mineral Resources, another Australian lithium mining giant, described the current market situation as a "rebalancing" of the supply chain; Australian mining company IGO warned of continued market volatility earlier this week, but added that the industry's troubles were only "short-term."
