This is good news for us now.
This was what I said
Post #:74146825 on June 4 2024,
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The spot spod price is already very low.No more room to go down any more than this, because if the LCE price would be any lower than this then lepidolite mines in China and petalite mines in Zimbabwe would be running at bigger losses.China has no economically viable lithium resources.Actually those lepidolite mines in China are already running at loss. In China, the local governments where the mines are and the central Chinese government are subsidising those mines. The mines in Zimbabwe also don't make profit because most of the resource there are petalite (low quality lithium ore) and the grades are not high enough to produce low cost concentrate there as well.Because the lithium-battery-EV industry chain is a very important strategic thing, they do everything to be strong on this chain. This is a political issue now.China must know well that there is a huge danger to keep the lithium price too low.If they do that they will be shooting themselves. As I said a lots of projects won't go ahead at these prices.Then the lithium prices will go very high again.---------------------------------------------
Now EU's investigation also shows that China is subsidising its EV and lithium supply chain industry heavily. We all know that battery is the most expensive part of an EV, and lithium is the most expensive part of a battery.
So the lithium is the most subsidised material in the EV supply chain by the Chinese Gov.
What will the the Chinese gov do now?
- Are they going to stop subsidising its EV supply chain, mainly the lithium production in China, which would cause higher lithium prices?
- Are they going to make their EV prices cheaper by more subsidising by pushing the lithium prices lower?
They can't push the lithium prices any lower than this. If they do they will kill all of their own lithium mines and industry and companies including Ganfeng and Tianqi, even CATL. Then the lithium price will go over the roof again after a while.
They will learn that they have to play the game by the western rules, or the WTO rules; namely free trade and no gov subsidies.
Chines has to stop subsidising the EV supply chain. Otherwise the west will put more import duties ore different obstacles in front of Chinese EV exports. That's obvious. I think the Chinese gov know that.
When the Chinese gov stop subsidising its own lithium supply chain, mainly the lepidolite mines in China then the lithium price will go much higher. That is obvious to me too.
It is interesting to watch the was between the West and the Chinese gov.
(20min delay)