Lithium demand is seen increasing in the coming decade on rising usage from the electric vehicle and energy storage sectors.

At this year’s Lithium Supply and Battery Raw Materials conference, the Investing News Network sat down with William Adams of Fastmarkets to get his insight on what’s been happening in the lithium sector.

“We’ve seen lithium prices rebound off the lows we saw in April,” he said. “I personally think we might go a slight bit higher, but then we’re going to probably meander sideways to possibly a bit lower as the market consolidates.”

Both demand and supply have been slowing down, according to Fastmarkets data.

“We do expect the demand side to pick up towards the second half of the year, and we’re seeing some early signs of that as well,” Adams said. “There is new production on the way, and it was on the way last year, and I think that will gradually come through.”

All in all, Adams believes the lithium market will be tight this year, but not as tight as last year.

“Supply needs to come online, but it will continue to face these delays; it seems so inherent in the market that it just does take time,” he said. “I think what people want to see is more evidence and data supporting a recovery in demand. I think that that is going to be key.”

Adams also shared his insight on what’s happening in the energy storage segment and what to expect in the coming years.

Listen to the interview above for more of Adams’ thoughts on the lithium market, including where he sees prices going and his short-term outlook for the sector. You can also click here for our recap of the Fastmarkets event.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.