Why did standard Lithium stock drop on Monday?

Aside from fears about how high can Standard Lithium shares go, there seemed to be no plausible explanation to the lithium stock's sudden Monday drop, especially on a day when two large global automakers made big bets on electric vehicles. As more EVs hit the roads, demand for lithium-ion batteries should rise as well.

What happened to standard Lithium (SLI)?

Standard Lithium ( NYSE: SLI) has dropped 23.14% (YoY) and is trading 58.83% below the 52-week high of $9.28. Lithium prices have been on a free fall, after Chinese Battery Company, CATL reportedly offered rare discounts on the commodity to automakers.

Why are Lithium prices falling?

More supply + less demand = falling prices for lithium. As of today, here is the decline in lithium, with this month being either the beginning of the end for lithium or somewhere close to the panic point from which it is more likely to recover: It isn’t just lithium prices, though lithium is the poster child for the Battery Revolution.