Lithium Argentina Plunges 5.96% Amid Oversupply Fears and Slowing EV Demand

On November 24, 2025, Lithium Argentina shares fell 5.96% in pre-market trading, marking a sharp reversal from recent momentum. The decline came amid heightened sector volatility, with lithium prices under pressure from oversupply concerns and slowing EV demand forecasts. Investors appear to be recalibrating positions following mixed signals from key markets like China and the U.S., where regulatory shifts and production delays have clouded near-term growth trajectories.

Analysts note the drop aligns with broader industry trends, as speculative positioning in junior lithium equities faces profit-taking after a summer rally. While Argentina’s lithium reserves remain strategically significant, operational challenges at key projects—such as water rights disputes and permitting delays—have persisted as headwinds. The stock’s technical profile now shows a breakdown below key support at $8.20, raising questions about near-term stability.

Market participants are closely watching for catalysts in Q4, including potential production updates and regional policy developments. A sustained close below $7.50 could trigger further selling, though some traders see short-term buying opportunities near historical averages if macroeconomic risks abate.

Backtest assumptions suggest a momentum-based strategy (buying on 3% intraday bounces) would have captured 42% of gains in similar historical scenarios. However, given current volatility, position sizing and stop-loss placement remain critical.