Lithium has extended almost monthlong run of declines, taking its drop this year to 75%, with expectations the rout in the electric vehicle battery metal is far from over.

Chinese prices of lithium carbonate, a semi-processed form of the metal, fell 2.3% on Thursday, and are down 20% so far this month. The last time they posted a daily gain was on 25 October. Spodumene, the lithium-bearing rock mined in Australia, has more than halved in 2023.

A supply glut has pushed down prices in 2023, after they surged in the previous couple of years. The global lithium market won’t return to deficit until 2028, according to forecasts from industry consultancy Benchmark Mineral Intelligence. Elevated interest rates are also leading to uncertainty over global EV demand, with some motoring manufacturers makers rethinking their strategies.

“With lithium supply growing more next year, we are likely going to see prices falling further,” said Allan Ray Restauro, analyst at BloombergNEF. “On the demand side, some regional differences on EV sales have been dragging sentiment down around the industry.”

Read: Oil giant Exxon Mobile to pivot into lithium for EVs

SQM, the world’s second largest lithium producer, warned investors last week the downward price trend could continue for the rest of the year. Albemarle, the biggest miner, said earlier this month that some producers have started to rein in operations as prices fall below reinvestment economics. — Yvonne Yue Li and Annie Lee, (c) 2023 Bloomberg LP