Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) is at the forefront as lithium prices are predicted to rise in the coming months. According to Citi analysts, lithium prices may increase by as much as 25%, driven primarily by supply curtailments and market rebalancing. The recent suspension of operations at Contemporary Amperex Technology Co., Limited (CATL)’s lepidolite mines in China, accounting for 6% of global supply, could significantly impact prices.

Citi analysts report that the lithium market has been experiencing a bearish phase, with short positions accumulating on global exchanges like GFEX and COMEX. However, the closure of some operations and re-stocking activities have begun to balance the Chinese lithium market. Increased demand from electric vehicle manufacturers is also expected to shift the market dynamics.

Focus on Century Lithium’s Achievements

Century Lithium Corp. has marked a significant milestone by producing lithium carbonate with a purity of up to 99.2% at its Nevada Pilot Plant. These achievements underline its progress in the lithium industry.

Meanwhile, Nevada Lithium Resources Inc has reported a high-grade lithium zone at the Bonnie Claire project, emphasizing the region’s resource potential. Argentina Lithium & Energy Corp has secured acquisitions in Argentina’s Salta Province, further strengthening its presence.

Short Covering Expected in the Market

Citi anticipates a wave of short covering as market conditions evolve. Investors are likely to cover their short positions, potentially rallying prices to $13,000-$14,000 per tonne on COMEX. Despite recent gains, Citi analysts urge caution, highlighting lithium’s volatile fundamentals and the need for careful monitoring of supply-demand dynamics.

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