Company Guidance
Lithium Royalty Corp. (LRC) acknowledges that lithium prices softened during Q2âŻ2025, but it now expects a sustained upward price trajectory as the market moves into the second half of the year. The firm points to a 52âŻ% price rally that has already begunâfuelled by âcontinued robust demand, production cuts, and better visibility on trade dynamicsââas the baseline for its forwardâlooking outlook. In short, LRC is signalling that the recent price weakness is a shortâterm correction, and the next price trend will be higher as supplyâside constraints tighten.
Implications for Production Cuts
LRCâs commentary also implies that ongoing production curtailments will remain a key catalyst. The âproduction cutsâ referenced are not oneâoff events but an ongoing, coordinated effort among major lithium miners to align output with the accelerating demand from EV manufacturers, batteryâgrade applications, and energyâstorage projects. The company expects these cuts to persist through the remainder of 2025, providing a more disciplined supply curve and reinforcing price support.
Trading Takeâaways
- Longâbiased positioning on LRC and related lithiumâexposure equities appears justified, given the companyâs bullish price guidance and the supplyâtight backdrop.
- Anticipate upâtrend continuation in lithium prices; a break above the recent 52âŻ% rally level could trigger further upside and open the door for shortâterm pullâbacks.
- Monitor productionâcut announcements from peers (e.g., Albemarle, SQM) and EVâpolicy developments, as any acceleration or reversal will directly impact LRCâs price trajectory and the broader lithium market.