Canaccord warned that lithium supply could enter a deficit lasting until 2035, a shift that could constrain battery metal availability for the energy transition. Lithium, a key battery metal, has seen prices tumble 80% in the 12 months to mid-2025 and fell 90% from a 2022 peak, eroding margins and stalling new projects. According to Canaccord , lithium supply could enter a deficit lasting until 2035 as prices have fallen 80% in the past year and 90% from a 2022 peak. The slowdown has seen Australian miners halt production at several projects, while CATL suspended lithium production at one of China's largest deposits. China's EV sales fell 32% in February, yet exports surged 140% last month amid an oil shock. With supply tightening and investment stalled, the industry may need clearer demand signals before new lithium projects resume, but the current trajectory suggests a prolonged deficit that could impact battery supply chains for the next decade.