The HC Commodities Podcast Lithium’s Hard Year with Caspar Rawles
Jul 8, 2025
Caspar Rawles, COO at Benchmark, shares keen insights into the turbulent lithium market. He discusses significant price drops due to oversupply and shifts in EV demand. With new production methods and geopolitical tensions at play, the dynamics are changing fast. Rawles underscores the importance of risk management in a volatile landscape and introduces upcoming lithium futures contracts that could reshape industry strategies. He also highlights growth potential in energy storage as the sector navigates through uncertainties.
AI Snips
Chapters
Transcript
Episode notes
Lithium Carbonate vs Hydroxide Dynamics
- Lithium carbonate is mainly used in LFP battery chemistries popular in China, while lithium hydroxide suits higher energy density batteries dominant in Western markets.
- Recent processing innovations have inverted historical price premiums, with carbonate often costing more than hydroxide now.
2024 Lithium Price Decline Causes
- Lithium prices started 2024 high but fell steadily due to oversupply and slower EV demand growth.
- Macroeconomic issues like China's economic problems and geopolitical conflicts also pressured the market.
Supply Surge Led to Oversupply
- High lithium prices in 2022-23 triggered new supply from diverse global regions, including less economical sources.
- Supply growth outpaced demand growth, causing oversupply despite strong EV adoption.