Citi raises short-term target for lithium prices but believes the uptrend is temporary.

Citi analysts have raised their short-term forecast for lithium prices in a report, while also stating that the recent increase and supply reduction is only "temporary". "We recommend establishing short positions as lithium carbonate prices continue to rise over the next few months," analysts Shreyas Madabushi wrote in the report. The bank expects the recent supply shortage situation to not last more than 3-6 months, "as lithium remains a key raw material for the strategically important battery industry". Citi has raised its lithium carbonate target price for 0-3 months from $800 per ton to $1,000. The bank expects the market to remain oversupplied for at least the next two years, and may once again put pressure on prices in 2026.