Pantera Minerals (ASX:PFE) has reaffirmed its confidence in the long-term fundamentals of the lithium market, despite recent price fluctuations.

The company believes that global demand for lithium continues to grow at an impressive rate of 25 per cent per year, driven by the increasing adoption of electric vehicles (EVs), energy storage solutions, and data centres.

Tim Goldsmith, Non-Executive Director at Pantera, emphasised the industry’s nascent stage and the challenges in understanding its long-term trajectory.

“The lithium industry is still in its early stages, and many are struggling to understand its long-term trajectory.

“We’ve seen demand grow at 25 per cent per year for a long time, and there’s no reason why that won’t continue — driven by EVs, energy storage, and data centres,” Goldsmith stated.

While the global push for electrification continues to fuel lithium demand, Goldsmith highlighted the challenges of bringing new supply online.

He noted: “The challenge is that new supply only comes online when prices incentivise it, and right now, we’re in a low-price cycle.

“That means volatility is here to stay, but the long-term fundamentals remain incredibly strong.”

Despite the current low-price cycle, Pantera Minerals remains optimistic about lithium’s future.

The company is actively advancing its Smackover lithium brine project, positioning itself to meet the anticipated surge in demand.

This aligns with industry projections that suggest global lithium demand could increase 3.5 times between 2023 and 2030, primarily driven by the rapid adoption of EVs and expanding use of lithium-ion batteries.

The lithium market’s resilience is further underscored by the entry of major players like ExxonMobil, Equinor, and Rio Tinto into the sector.

Goldsmith views this as a clear sign of the industry’s maturity and long-term value.

As the world continues its transition towards greener energy solutions, companies like Pantera Minerals are poised to play a crucial role in meeting the growing demand for lithium, despite short-term market volatilities.