Banter and General Comments, page-4566

We don’t expect much to change in the coming days as most consumers remain supplied by their longer-term contracts with little need to shop for material on a spot basis,”

This is the most important line in the article. Supply is so important at this initial upramp stage that all the big players have had to ensure they stay safe by building the relationships with long term supply deals. Paying the right price for the long term vision is more important than spot at the moment. Compounding this, is that spot can be of less use due to the need of getting the feed-in characteristics correct for the processes in place. Dynamics change with different feedin material. Long term supply is much easier to handle because they already know the quality characteristics of what they are going to get and their processes are already designed to handle that.

I think the spot price dynamics will change when more of the gigafactories start coming online line. When we have more factories that can produce batteries there may then be a need to go beyond the fixed and head to the spot.

What we already know from the likes of Kia and Hyundai is they can't get enough batteries fast enough to keep up with demand of the number of cars they can sell. Last night the same thing was mentioned by Tesla, with Musk saying that some parts of the business were becoming purposely not a focus because access to enough batteries is a problem. Batteries ain't batteries and these companies only want the best.

As a long term holder I am not accumulating because of what is happening today, but because I can see the path to the future. It is that future potential that has me and most of the HC community so excited.

I am off to enjoy the weekend and I wish the rest of the HC community a great weekend too!

Looking forward to the trading week that awaits.

STW

PS. Just remember this is the future in every city around the world