There is an incentive at the pricing of over $1,500 per tonne of spodumene, for not only all idle lithium mining capacity to be returned to the market but also for new greenfield developments to be funded, Euroz Hartleys said in a Wednesday note.

Spodumene prices in China soared 150% to $1,525 per tonne, lithium hydroxide prices jumped 78% to $14,666 per tonne, and lithium carbonate prices spiked 105% to $17,540 per tonne from cycle lows in around June 2025.

Increased demand from electric vehicle penetration as well as from battery storage requirements, combined with supply disruptions from the Chinese domestic supply, is driving prices higher. Battery storage in particular emerged as a lithium demand upside surprise, per the note.

Supply-demand imbalances are likely to occur due to the fast-paced growth of the lithium market, resulting in pricing spikes in the short term. Euroz Hartleys' long-term pricing forecast of $1,625 per tonne of spodumene is expected to incentivise greenfield production to come online.

The investment firm maintained its speculative buy recommendations on Patriot Battery Metals (ASX:PMT) and Wildcat Resources (ASX:WC8), with price targets of AU$0.95 and AU$0.61, respectively, with Patriot Battery Metals offering strategic exposure to North America's largest hard rock lithium deposit, and Wildcat Resources progressing its Bolt Cutter discovery as well as the Tabba Tabba project in Western Australia.