I think in a high growth sector like this you’re right, especially when the incumbent ICE tech has had 150 years of refinement and economy of scale cost containment. It’s clear that EV is the better tech and needed in the context of pollution and global warming but for it to truly disrupt, innovative business practices and ongoing government support might be needed. The question is whether maximal efficiency sufficient for vertical integration to make sense can be achieved by a company involved at every step rather than competition within each sector from mine to chemical plant to battery production. There is a reason that VW doesn’t make tires or farm cows for leather after all - however as opposed to buying an undeveloped ore body, AJM seems on the cusp of offering up a functioning mine at nameplate with costs contained and competitive. Why pay market rate per tonne when you can buy decades of supply far more cheaply.
AJM Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
