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Lithium supply risks, page-17

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hermans

368 Posts.

22/04/16

11:56

Post #: 17577844
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Originally posted by airconditioner ↑

Hermans - the only question is when does the tipping point reach.
We are no longer talking about "if".
That tipping point being when there are enough EVs in use to push petrol's profitability to the point where its a coin-toss which vehicle the family should buy next, which way a mega-corporation should direct its investment and which power infrastructure a town,city or country should roll out.

Norway has just mandated their use in the next decade. China (CHINA!) - is increasingly pushing mandatory targets across a whole range of public transport and they've become the only vehicle you don't need to win a lottery to buy a license for in Beijing. A lot of countries now provide ownership subsidies already. Every big auto-maker I can think of either has , or is bringing to market a range of EVs.
The Tesla proves a beautiful, powerful and efficient vehicle can be brought to market for a reasonable cost, supported by growing global infrastructure. They have released free IP to assist in creation of standards and to assist those creating infrastructure (good move Elon)

Need I go on?
Home battery storage, subs, satellites, drones, electronic goods, house-hold appliances, fork-lifts, trams.....
See I couldn't stop myself.

EVs are just one of the market areas.
Take vehicular transport as a whole. It is just a matter of time before ships and planes join the party.

Petrol is cheap. You just suck it out of the ground. But the cost is inefficient and harmful energy production.
We still have to work on cheap renewable base-load power but the amount of research flowing into li technology is a revolution that will assist here.

The real question is how long can petrol survive. Each % point increase in EV up-take makes the oil rig and the local petrol station a little less profitable. There is a point where petrol is no longer profitable enough to produce. We almost hit that this year just with regular supply-demand equations of the market.

That is called the tipping point.
And provided you're not in your 90s now - you and the rest of us will see the end of the petrol-powered car, the service station and the oil rig in our life-times.

And to bring it back to point. Galaxy have a head-start. They are off running with a mine and will be bringing assets online faster than their competitors can even get started.
Its a wise investment to back a company such as this, not a gamble.

Cogent?

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Not really cogent, no.

You offer a good argument why EVs will succeed. My point was about lithium oversupply in case they don't succeed, and there's always a risk they don't. Another risk is lithium batteries won't win out if EVs succeed (just saying their is risk!, not that it will happen).

The GXY threads are almost exclusively about positive reinforcement of the converted by the converted these days. Waste of time really.

GXY Price at posting: 43.5¢ Sentiment: Hold Disclosure: Held
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