Well we can all agree that the disconnect continues. For the previous 2 years, the Lithium sector has been subjected to the disconnect between the supply/demand fundamentals and the perpetual deficit that was coming to light.
Now, PLS specifically is being subjected to a disconnect between actual cash generation and their market cap. I can understand wannabes and marginal resources being hammered but a company that just received $42 Million for 5kt. Even more astounding is that even though car sales globally have been decreasing for several years, BEV sales have been increasing exponentially with no end in sight yet.
The only ? is will a worldwide recession halt discretionary spending on EV's. IMO it will be negligible because of government policy direction on CC. China is currently talking with EV manufactures with regard to extending subsidies.
I just read an article on the impact of the GFC on US auto sales. The article covered several factors that may have contributed to a collapse of car sales in the region of 40% during the GFC. High oil prices, a collapse in real estate prices were thought to be the main contributors. As it turned out, km's travelled remained the about the same and consumers stated that it was mainly the negative sentiment about their present and future income during a down business cycle that caused the delay in vehicle purchases. Now real estate prices would be one of those feel good sentiment factors that makes the average punter spend. In Oz especially so.
So apologies, after this long ramble what can we expect. More uncertainty with world economic activity slowing. I'm still not convinced that EV purchases will be impacted as much as ICE sales. OEM's have basically ceased R & D on ICE technology. Oil and energy security is now front of stage. Production lines have already started being converted to EV's. Subsidies remain and during a period of economic slow down, governments will be trying to stimulate economic activity and prop up OEM's. Remember the GM and Chrysler bailouts during the GFC. Holden and Ford anyone.
If there does happen to be a slow down, governments will still try and stimulate. If EV sales do drop, Lithium will be available for ESS. Currently they are last in line for their share. Grid storage capacity will increase exponentially as Energy security becomes a priority.
This is all IMO and I have no credentials in getting Economics 101 correct.
(20min delay)