WR1 General Discussion, page-31455

There are other constraints on mining lepidolite to consider.

My understanding is that China does not have vast reserves of lepidolite and regardless, the amount of material mined relative to lithium produced is significant. That means more waste (alongside much higher costs in processing).

Chinese authorities have already cracked down on 'more waste' - but the imperative to keep costs low will mean producers would rather not deal with the waste if they can get away with it.

Right now, CATL and BYD are pressing their advantage over others (battery manufacturers and EVs respectively). They hope to reduce the cost of batteries (EVs) to a point where they are effectively monopolies (duopolies).

It will be hard for others to compete when they achieve that end. I heard recently (a JL podcast) that the Japanese have already conceded they cannot compete with China on price and so will look to the next generation of batteries to come back to market.

Likewise, these companies are making batteries with battery chemistry that suit their ends - LFP batteries are cheaper and more suited to lithium extracted from brines (which the Chinese can more readily and securely access than spod).

They have advanced LFP technology a long way and will work hard to kill any alternatives that have the potential to offer superior performance but are better suited to western supply and require minerals they do not have in abundance.

Low-cost batteries that are good enough but will result in vehicles that carry significant additional (unnecessary weight) will be the outcome.

I see JL is again pontificating on LFP being superior and given his own investment interests lie in brine plays his motivation to advocate that is quite plain. What Winsome does in this space with a Becancour partner will be of great interest. It offers hope to non-Chinese supply.

Watch this space next six months.

So manipulating markets via uneconomic supply and obsficating pricing is 100% rational from a China/CATL/BYD perspective. As would be others protecting their interests by insulating low cost up and coming supply - like that which will be provided by Winsome - from Chinese BS.