**: Global Market Broadcast.
Goldman Sachs believes that it is too early to conclude that battery raw materials are over. The agency warned that a severe surplus and headwinds for the Western EV industry could keep battery raw materials low for longer.
Goldman Sachs made the above statement in a research note released on Tuesday.
Prior to Goldman Sachs' report, some of the most popular battery metals – nickel, copper, lithium and cobalt – were in significant decline. Metals such as nickel, copper, lithium, and cobalt have a wide range of end-uses in the energy industry and are heavily used in electric vehicles, wind turbines, and solar panels.
Goldman Sachs said the outlook for nickel, lithium and cobalt looks bearish.
Goldman Sachs analysts, led by Nicholas Snowdon, wrote in a note to clients: "While battery metals have been significantly higher – nickel, lithium and cobalt – 65% off their cycle peaks, we believe it is too early to declare a decisive end to these bear markets." ”
"Over the past quarter, margin pressures have largely had a rationing effect," the bank noted as an example that lithium and nickel are declining.
Goldman Sachs said that coupled with the downward revision of the Western world's related demand for electric vehicles, the "huge" ** pipeline means that the amount of lithium and nickel oversupply in 2024 is "still considerable".
Goldman Sachs analysts said that on a 12-month basis, the Wall Street bank expects cobalt, nickel and lithium carbonate to be 25% and 25%, respectively, on the current basis.
This means Goldman Sachs expects cobalt prices to reach US$26,000 per metric tonne within 12 months (down from US$28,000 previously**), nickel to US$15,000 per metric tonne and lithium carbonate to US$10,000 per metric tonne (down from US$11,000 previously**).
On Tuesday, China's lithium carbonate** was about 108,500 yuan ($15,071) a tonne. Compared to the same period last year, lithium prices** are up nearly 70%.
The London Metal Exchange (LME) nickel price was last traded at US$17,945 per metric tonne, while the LME cobalt** was at US$28,550 per metric tonne.