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The oil boom bust boom being repeated by Lithium over the next decade. Add in Lithium having several different sources also having to share the battery market with other possible technology like Sodium makes for more boom bust cycles. Do you trade it or watch it go up and down ??.

https://gradprograms.mines.edu/blog/boom-and-bust-a-cycle-familiar-to-the-oil-and-gas-industry/




Robert Rapier, writing for Financial Sense Wealth Management, says the cycle is a result of the industry’s dependence on capital and the time it takes to execute projects. He identifies five stages to the oil industry’s boom-bust cycle:

Stage 1, the bottom of the cycle, is characterized by excess supply, which leads to lower prices and under-investment by the industry. This stimulates higher demand. In Stage 2, demand grows faster than supply and prices begin to rise. As companies earn greater revenues in Stage 3, they increase investment in new projects. In Stage 4, high prices put a dent in demand, and as new projects come online, production outpaces demand.

Stage 5 is when prices collapse, leading to contraction in the oil industry, followed by a return to Stage 1.