Morningstar's analysis report states that lithium prices are at a new low due to excess supply. Considering the increasing sales of electric cars globally and the development prospects of energy storage systems, the current growth rate of lithium demand is expected to be in the double digits. It is anticipated that with reduced supply, lithium prices will rise in 2025. Mid-term forecasts predict that lithium prices will rebound to $0.02 million per metric ton, reaching the marginal cost level of production.

Although recent downward cyclical trends have affected the industry's short-term forecasts, Morningstar expects that the mid-term rise in profits can provide support for the valuation of most lithium stocks. The current prices of the eight lithium producers covered by Morningstar are all below the predicted fair value. Therefore, there is an expectation of strong long-term growth opportunities.