Big Lithium Short Gets ‘Dangerous’ on Lower Supply Outlook
- Pilbara Minerals shorts at record levels on lithium price fall
- UBS, Goldman cut lithium supply estimates as production slows
Brine pools at the Albemarle Corp. Lithium mine in Calama, Chile.
Photographer: Cristobal Olivares/BloombergThis article is for subscribers only.
Short bets worth billions against some of the world’s largest lithium producers are under threat as a supply glut shows signs of thinning.
UBS Group AG and Goldman Sachs Group Inc. have trimmed their 2024 supply estimates by 33% and 26%, respectively, while Morgan Stanley warned about the growing risk of lower inventories in China. The revisions come after lithium prices cratered last year as supply ran ahead of demand, with some producers cutting output.