@ndp_2010 So how does one turn it around?
The argument about price is no longer valid. It's about making the supply chain more robust and free of ‘state’ manipulation. In that regard, Chinese processing which dominates the world is being curtailed. The objective is to diversify not decouple.
Presently, China is negatively leveraging on commodities to displace competitors in an effort to maintain its supremacy. However, the OECD countries, which account for more than 63% of global GDP (2023), three-quarters of global commerce, 95% of global official development assistance, and more than half of global energy consumption, aren't buying it. The shear weight and wealth of like-minded nations is making this shift and the Australian government is doing what it can to make sure that we can capture the moment.
OECD nations know China's game. It just has to look to what it did on rare earths in 2010. Graphite is in a similar situation, when China prohibited exports to Japan in 2010, this lead to Japanese businesses supporting a struggling Lynas until they were able to support themselves. Now, they are an invaluable part of the supply chain.
We may not be able to compete on the basis of low labor costs but we can adopt the stance that we are a geopolitical solution.So far, global governments have provided sound answers to prepare and navigate us through this new industrial age that is upon us. This has been further underscored with the US raising tariffs overnight, the German foreign minister sniffing around Australian resources and, the Korean government throwing billions into diversification of its supply chain, all in the last week.The IRA restrictions will limit the ability of exChinese anode players to source graphite material from their traditionalChinese supply sources and time is running out for them to comply.
Aussie resources will surely see a BOA-domino impact from last nights budget. If RNU is the only graphite project in Australia that is ahead of the curve and, as Simon Moores states, "localising supply chains begins with graphite," I know where my money is going.
AIMO, DYOR GLTA(patient)H
