EV Trade War, East vs West 8:30 pm Four Corners ABC, page-21

Over the last 12-18 months, I have asked myself whether I am being realistic when I think (and hear) about the Chinese conspiracy to control all levels of the lithium value chain. When in 2022 I first heard about the introduction of the Shanghai futures market I thought that there was an ulterior motive other than simply to allow industry particpants to hedge exposures. Since then we have seen the entire industry become hostage to speculators and hedge funds using the derivatives market and also the vertical integration of supply lines in China and Africa where sub-economic product undermines the producers elsewhere.

In some respects it is comforting to hear that the concerns I had were not figments and have now been acknowledged by the industry heavyweights as being true. We have even seen evidence from senior CCP bureaucrats (on 4 Corners) of the clever construct of control mechanisms. I see there are some benefits that will fall out of their efforts insofar as some mitigation of greenhouse emissions and clearer skies in China may result. It is of little consolation when we will continue to be manipulated, but at least the facts are now openly talked about. Perhaps there will be more pressure on western governments to take proper action instead of pretending there's "nothing to see here".

Now we need to also see push back against the associated disinformation campaigns of the legacy auto OEMs and "Big Oil" who are the ones with most to gain by the delays in adoption of EVs. One example I can point to is the use by Toyota of the catch all term, "Electrified Vehicles" to describe and promote its non-ICE products, which appears designed to provide purchasers of hybrids with a warm feeling that they are doing the planet and themselves a favour, when indeed they are actually buying into the worst of both worlds by having to maintain an ICE propulsion train as well as only modest electric capacity. At the same time it is promoted as soothing concerns about so called range anxiety that might only be a real issue in a tiny percentage of overall usage patterns. I have no doubt such is the case, as we know these type of campaigns have historically been orchestrated by the tobacco industry and sugar industry, with the latter falsely and shamelessly blaming fat for health issues. It's the same old playbook.

Regards
DF