GALAXY GOING DOWNSTREAM, page-59

I suspect it is because there are still bottle necks. We know from reports that the car manufacturers cant get enough batteries right now, and if the converters are idle that means they can't sell all their LiCO3 or LIOH output (which partly explains prices coming down) so between these two groups is what? Well look at the picture below:



It is the Middle Stream - which takes the Lithium Chemicals and turns them into cathodes, anodes and electrolyte. Also, if Panasonic in the Tesla factor is anything to go by, then the battery makers are having throughput problems as well. So while it was the Converters that were the bottle neck last year, now it is the Battery component manufacturers that have not caught up. Given the number of battery factories under construction it is likely that with them will come the increase in component manufacturer capacity, as I understand many of those are one stop shops - they take in the lithium chemicals and produce the battery - which is probably how the industry is addressing the problem - vertically integrate down the supply chain. That is my "guess" anyway, but I think it is a pretty accurately informed guess.