Marin Katusa’s observation underscores a major contradiction in the lithium sector — a steep price collapse occurring alongside projections of massive demand growth. The current price correction can be attributed to oversupply, slower near-term adoption of electric vehicles, and excess inventory built up in prior quarters. Despite this, long-term demand forecasts remain strong, driven by global electrification efforts, battery storage needs, and energy transition policies.

The sharp price decline raises concerns about the financial sustainability of many lithium producers, especially those with higher operating costs. If prices remain suppressed, new project developments may be delayed or canceled, potentially creating future supply shortages just as demand accelerates.

This imbalance poses challenges not only for producers but also for supply chain planning and investment strategies. The sector may need a recalibration in how production is scaled to meet future needs without triggering cyclical crashes.

As the lithium market continues to evolve, staying informed about production trends, demand growth, and cost efficiency across the sector will be crucial to understanding where stability may emerge. The so-called "math problem" is real — and resolving it will likely reshape the future of the entire battery materials supply chain.

Marin Katusa highlights a real dilemma in the lithium market — collapsing prices despite soaring demand forecasts. The recent price drop stems from oversupply and short-term demand softness, but long-term projections remain strong due to EV growth and energy storage needs. This disconnect could pressure high-cost producers and delay new projects, risking future shortages. The sector faces a tough balancing act between sustaining supply and navigating volatile pricing.

The lithium market is facing a sharp contradiction — falling prices while demand is expected to grow significantly. This mismatch could strain producers and impact future supply. If production slows due to low prices, it may lead to shortages just as global demand surges. The sector is in a fragile phase that requires careful balance between cost and long-term demand growth.