UBS predicts that there will be a supply gap in the lithium market starting next year, and has raised its price estimate for lithium spodumene.

UBS expects a supply shortage in the lithium market starting in 2026 and has raised its price forecast for lithium spodumene. UBS analysts have raised their lithium demand forecast for the period before 2030 by up to about 10%; they have raised the price estimate for lithium spodumene in 2026 by 64%, in 2027 by 148%, and in 2028 by 94%. UBS stated that the price increase will prompt a response from the supply side, but this will take time; the growth in demand is being driven by battery energy storage systems.