- As the saying goes – the best cure for high prices is high prices.
- According to [GS](https://www.goldmansachs.com/insights/pages/gs-research/battery-metals-watch-the-end-of-the-beginning/report.pdf) this is now coming to battery metals (cobalt, lithium and nickel).
- In other words, despite an exponential demand profile, the surge in prices is bringing on a huge supply response.
- “_We forecast all three metals to shift into sustained surplus over the next 1-2 years_” (see chart).
- “_Lithium is the most prominent in this trend, where we expect supply growth to average just over 30% per year over 2022-25, reflecting the ramp-up of new projects in Australia, China and Chile in particular._”

![](https://cdn.commonstock.com/dc45bb81dcbaf9f9d146509480167ba4cb2a5cc785325c3b8cb2478919f9a0aa-1026x832.png?fit=max&w=704)

I think @jennymanydots follows this space pretty closely. I wonder what her thoughts are on the GS forecast. 

AverageInvestor

https://www.goldmansachs.com/insights/pages/gs-research/battery-metals-watch-the-end-of-the-beginning/report.pdf

The cure for high prices, battery metals edition

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