New Lithium Related Article, page-2292

Just found this article from the PLS thread thanks to grizzle1 and whisky49

https://www.businessfast.co.uk/electric-cars-china-powers-the-battery-supply-chain-financial-times/

Electric cars: China powers the battery supply chain – Financial Times

This is a really good article that really goes to some length to explain the Chinese strategy and dominance in becoming the lithium giants that they now are. It really shows how they have played the game, taken the risks and shaped things the way they have for their benefit while everyone else has been asleep. Things are the way they are because of lazyiness to take risks and see the future.

My favourite bits from the article:

"At a time when western governments are watching Chinese industrial policy for signs of unfair advantage, one of the interesting features of its new prominence in lithium is that it has not been achieved by the state-owned companies. Instead, it is the product of a group of entrepreneurs who “jumped into the sea”, as the Chinese call the launch of a private business — sensing an opportunity in batteries for mobile phones and then electric cars"

"“If you look at the money that’s gone into lithium over the past few years, it is well over 50 per cent Chinese,” Mr Lowry says. “But that was open to everybody, this wasn’t a rigged game. The Big Three as a collective group were too set in their ways. China is investing ahead of the curve.”

"Mr Wang, who has just returned from a meeting with Argentine president Mauricio Macri, says that he is still keen on more lithium acquisitions. “But we don’t want to spend too much money too early,” he adds"

"At the beginning of May two US senators, Lisa Murkowski and Joe Manchin, proposed a bipartisan bill designed to boost US production of critical minerals such as lithium."

So the question is has the world really woken up to what is happening? Has Westfarmers stepping in been the sign that the western perspective is about to change? Are western companies about to go on a buying spree and do what ever it takes to catch up? They are some real serious questions. If in fact, the west does wake up and realise what they have been sleep walking towards that is going to cause a fierce rerating of assets in this space. The west will start to bid things up in terms of M&A and if Chinese companies start to see that the west has woken up they will most probably be prepared to start paying more. At the moment Chinese companies are locked into a factory outlet super store with a 90% off sale while everyone else is at the door banging to get in. Once the number of people realise what is going on and the number of people banging on that door multiples there will be enough force for a stampede and that 90% off clearance will disappear.

All the major investment banks are having fun doing what they are doing passing the paper parcel around locking in trading profits. While they do that, those that see the future are building a new economy. It appears to me GXY and a few of the smaller players see what is happening, the future and the drunken ignorance driven by investment bank greed. They are trying to build the alliances and hold out for as long as they can until some western companies sober up and realise that the future is there for grabs.

So the final question is, who much longer until the sector is rerated and given the true value that it deserves? Early signs are here that it may be happening, but we still got a long journey to go.

Wake up, wake up, anybody fast asleep!!!!