I don't think the fall in the sp of LKE and Vul is going to make much difference for demand or even desperation from the major battery and EV manufacturers to lock in supply. If anything it might help with our sale. LKE dropped due to a three year delay to first production. That isn't limited to LKE according to the story below.
Of particular importance is this extract from the below text.
Banking giants JPMorgan (JPM.N), Goldman Sachs (GS.N), and BMO Capital Markets (BMO.TO) and others also attended, their interest fueled by an expected wave of lithium takeover deals and rising demand for hedging and other financial instruments."Our strategic investment and M&A pipeline is extraordinarily strong,"
Albemarle (ALB.N), the world's largest lithium producer, is growing rapidly across the Americas, Asia and Australia. Still, it expects global lithium demand to exceed supply by 500,000 metric tons in 2030. Various consultancies and other producers have slightly different projections, but all warn of a looming shortage.
"It's a big challenge," said Eric Norris, head of Albemarle's lithium business.There were 45 lithium mines operating in the world last year, with 11 expected to open this year and seven next year, according to Fastmarkets. That pace is far below what consultants say is needed to ensure adequate global supply.Those growth projections assume a best-case scenario, even as mining companies face difficulty hiring technical talent, rising costs and delay times for crucial equipment.Even if more lithium mines are built, there are not enough facilities to produce specialized types of the metal for batteries. Automakers may be forced to accept lower-quality lithium, which decreases an EV battery's range, executives said.
Banking giants JPMorgan (JPM.N), Goldman Sachs (GS.N), and BMO Capital Markets (BMO.TO) and others also attended, their interest fueled by an expected wave of lithium takeover deals and rising demand for hedging and other financial instruments."Our strategic investment and M&A pipeline is extraordinarily strong," said Rahim Bapoo, managing director of BMO's critical minerals practice.In one example of the rampant hunt for lithium, Mitsui (8031.T) is on the verge of signing a $65 million deal with Atlas Lithium (ATLX.O) to guarantee supply from a Brazilian mine project that Atlas hasn't finished designing."Investment has to continue, otherwise there will be more delays to (lithium) timelines that are already massively long," said Tara Berrie of EV maker Rivian (RIVN.O).
Full story here.
https://www.reuters.com/markets/commodities/lithium-producers-warn-global-supplies-may-not-meet-electric-vehicle-demand-2023-06-22/
