Brokers say lithium price could halve by 2023 but Core Lithium disagrees. Here’s why

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The future of the price of lithium could vastly different that previous expected, according to one top broker. However, ASX lithium favourite Core Lithium Ltd (ASX: CXO) isn’t worried.

The company’s chief financial officer Simon Iacopetta is reportedly bullish on lithium prices. He’s also confident of the company’s profitability, even if prices drop.

At the time of writing, the Core Lithium share price is $1.20. That’s 5.16% lower than its previous close and 14.29% lower than it was at the end of last week.

For context, the broader market is also in the red on Thursday. Right now, the S&P/ASX 200 Index (ASX: XJO) is slumping 0.9% while the All Ordinaries Index (ASX: XAO) has fallen 0.96%.

Let’s take a closer look at Core Lithium’s outlook for lithium prices.

ASX lithium developer optimistic despite bearish brokers

A burgeoning supply of lithium could cause demand for the ‘white gold’ to fall over the next 18-months, causing the materials’ price to halve. That’s according to Credit Suisse. The broker is expecting lithium spot prices to slip to US$2,500 by the end of 2023, reports ABC News.

It comes after Goldman Sachs released its own bearish note on the near-term future of lithium last week. The note was likely one reason behind a sell-off among ASX lithium shares.

The brokers’ predictions come on the back of more companies looking to profit on the lithium boom by ramping up production.

One such company is ASX materials share, Core Lithium. It’s focused on developing the Finniss Lithium Project in the Northern Territory.

Iacopetta reportedly told the publication the company was expecting a brighter future for the battery-making material’s price than many brokers. He was quoted as saying:

We expect the shortfall of supply or new products coming to market to result in a continued strengthening of [prices] for the near term … We should be selling into a fairly positive price environment and generating healthy margins.

A recent update from Core Lithium stated the mine’s first production was on schedule to be delivered before the end of the year.

However, Iacopetta reportedly also noted the mine’s feasibility factored in realised prices of its spodumene concentrate lithium ore falling to $1,000.

Core Lithium share price snapshot

While the last fortnight has been rough on the Core Lithium share price, it’s still trading on notable long-term gains.

It’s currently nearly 90% higher than it was at the start of 2022. Shares in the lithium miner have also gained close to 360% since this time last year.

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