Citi Group ($Citigroup Inc. C$ ) stated in a research report cited by media sources on Thursday that it anticipates a further decline of 15%-20% in lithium prices in the near term. The price of lithium hydroxide on the Chicago Mercantile Exchange is projected to drop to US$22,000 per metric ton.

However, Citi Group expressed that the current price weakness over the next 12-18 months could prepare the market for a strong rebound in the longer term.

The lithium industry is expected to maintain a moderate surplus in the coming years. While spot demand is increasing, exchange liquidity remains very low compared to its growth potential. The growth potential is driven by consumers' willingness to manage price risks and producers' need for financing to support supply growth.