Investors of Lithium Stocks Need to Brace for Demand Lag

Benjamin Cox |

Benjamin discusses the complexities of the lithium market by comparing it to scotch in how supply and demand play out. With scotch, supply lags five years behind demand, since theoretically it takes at least five years for it to age. Lithium is similar in how supply is determined three years prior to it being available. Benjamin uses the auto market to show this; specifically, how demand for cars typically goes down 25% (which he points out is a fairly normal shift). The supply level for lithium has already been determined, even though it is about to have a major shift in demand. Benjamin contends that this will cause lithium’s price to plummet, which will then cause people to turn down lithium production, which will then be an issue once demand is needed and there is too little supply. Benjamin thinks that this will lead to bankruptcy for producers in the lithium market, and he fails to see how it can be a stable business.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Emerging Growth

Altair Resources Inc.

Altair Resources Inc, formerly Altair Gold Inc acquires, explores and develops mineral properties in Canada. The Company is in the process of exploring its mineral properties.

Private Markets


Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…