The Financial Post reports in its Friday, March 15, edition that short bets worth billions of dollars against some of the world's largest lithium producers are under threat as a supply glut shows signs of thinning. A Bloomberg dispatch to the Post reports that UBS Group and Goldman Sachs have trimmed their 2024 supply estimates by 33 per cent and 26 per cent, while Morgan Stanley warned about the growing risk of lower inventories in China. The revisions come after lithium prices cratered last year as supply ran ahead of demand, with some producers cutting output. Now, prices of the key material used to power electric vehicles are showing signs of a revival after the rout last year sent stocks spiralling and attracted short sellers. Bets against top producer Albemarle and Pilbara Minerals account for more than a fifth of their outstanding shares, or the equivalent of about $5-billion (U.S.). Tribeca Investment Partners analyst Jun Bei says, "Double-digit capacity has already been taken out of the lithium market and that usually is a sign that the commodity price is bottoming." Ms. Bei holds a long position in Pilbara. Shorting the company "is very dangerous" given signals of support for the metal's price.