S&P Global Commodity Insights Launches First-of-Type Daily US Lithium Carbonate Price Assessments
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Insights
The introduction of daily, spot market US lithium carbonate price assessments by Platts, an S&P Global Commodity Insights division, is a significant development for stakeholders in the battery metals and energy transition markets. The move towards greater pricing transparency is crucial in an industry experiencing rapid growth due to the increasing demand for electric vehicles (EVs) and energy storage solutions. The assessments will likely become an important benchmark for financial modeling and risk assessment, as the availability of reliable price data can reduce market uncertainty and improve the decision-making process for producers, consumers and investors.
The projected increase in US energy-transition demand for lithium by 15% by 2035 post-Inflation Reduction Act (IRA) highlights the importance of domestic production capabilities. However, the potential reliance on foreign sourcing due to project delays underscores the volatility and supply chain risks inherent in the sector. This new assessment tool could aid in identifying price trends and supply bottlenecks, enabling companies to strategize accordingly and potentially hedge against price fluctuations.
The establishment of a daily price assessment for US lithium carbonate reflects not only the maturation of the North American battery market but also the strategic importance of lithium as a commodity. From a financial perspective, the availability of a standardized price metric will likely enhance market efficiency and could influence the valuation of companies within the EV and battery supply chain. For investors, this represents an additional data point to consider in the valuation of equities and commodities linked to lithium production and consumption.
Further, the bullish sentiment in the North American lithium and battery sectors, coupled with the heavy investments to establish a robust supply chain, suggests potential growth opportunities for companies in this space. As such, the new price assessments may contribute to increased liquidity in the market and offer insights into the price elasticity of demand for lithium, which is crucial for investment decisions and forecasting.
The strategic decision by Platts to provide daily assessments for US lithium carbonate prices is indicative of the evolving economic landscape driven by the energy transition. The Inflation Reduction Act's impact on domestic EV sales and the push for localized mine-to-market value chains represent a substantial shift in industrial policy and economic development. The assessments could serve as a leading indicator of the health and trajectory of the clean energy sector, potentially influencing macroeconomic policy and investment in infrastructure and technology.
Moreover, the emphasis on domestic production and the potential for increased reliance on free trade agreement (FTA) members for lithium sourcing have broader economic implications. They highlight the interplay between trade policy and commodity markets, as well as the importance of geopolitical stability in securing raw materials for the energy transition. The price assessments will thus provide valuable insights into the intersection of economics, policy and market dynamics.
Complements Existing Suite of
The introduction of new price assessments of battery-grade lithium carbonate delivered duty-paid (DDP) to
New government policies such as the Inflation Reduction Act (IRA) have boosted domestic electric vehicle (EV) sales and accelerated a global movement to localize the mine-to-market EV value chains, while interest in energy storage has also intensified for overall energy transition. S&P Global Commodity Insights analysts forecast that post-IRA, US energy-transition demand for lithium will be
The Platts US lithium carbonate DDP assessments reflect standard battery grade quality; minimum of
Adriana Carvalho, Senior Managing Editor, Metals Pricing, S&P Global Commodity Insights, said: "We're pleased to offer these first daily domestic price assessments that will support market participants' growing needs for price transparency as the North American electric battery market develops further, bringing new insights to day-to-day decision-making."
US electric vehicle sales are set to surpass 4.6 million units by 2030 with support from energy transition trends and government policy, according to S&P Global Commodity Insights analysis. However, the analysis shows, among other things, that companies will need to secure stable and reliable supplies of cost-effective lithium to manufacture the EV batteries. These new market dynamics prompted many companies to revisit undeveloped lithium assets, expedite projects and explore new opportunities. There is a bullish sentiment for the lithium and battery sectors in
"As EV and energy storage demand increases, the North American electric battery segment will continue to develop. That progress will require independent price assessments and data to help shed light on emerging spot market activity," said Christopher Davis, Regional Metals Pricing Director for the
For details of the Platts assessments methodology, access: https://www.spglobal.com/commodityinsights/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/platts-assessments-methodology-guide.pdf
The Platts US lithium carbonate DDP assessments are available via S&P Global Commodity Insights products and services, including such as Platts Nonferrous Metals Alert, Platts Metals Daily, Platts Connect, Platts Market Center, and in the Platts price database.
Media Contacts:
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com
Jeff Marn +1 202-560-0776, jeff.marn@spglobal.com
EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value.
We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global.
S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.
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FAQ
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