Lithium Stocks Pressured After Argentina Sets Lithium Reference Price
2022.06.01 19:11
Lithium Stocks Pressured After Argentina Sets Lithium Reference Price
By Sam Boughedda
US-listed lithium stocks are declining Wednesday as investors worry that lithium prices are reaching a peak, while Argentina set a lithium reference price to boost transparency.
Lithium producer Albemarle (NYSE:ALB) is down 10%, with Lithium Americas (NYSE:LAC) down 9%, and Piedmont Lithium (NASDAQ:PLL) trading down 14%%. Meanwhile, lithium products maker Livent (NYSE:LTHM) is down 14%. However, lithium battery makers seem to have felt less of the impact, with Microvast Holdings Inc (NASDAQ:MVST) falling just 1.4% and Quantumscape Corp (NYSE:QS) declining by -4.2%.
The fall follows news that Argentine customs set a reference price of $53 a kilogram for lithium carbonate exports to prevent the under-quoting of exports and enhance transparency.
The move by the South American country, which is a major lithium producer, is in response to irregularities that were detected in shipments over the last two years.
As the demand for electric vehicles grows, so has the need for lithium, sending prices surging in 2022.
