In China, sales of EV's fell by almost 50% after subsidies were stopped. China expects lithium prices to fall further - what a dream - because, after fast markets, prices will pick up again after April as inventories will then melt. China created this problem itself by never considering sourcing lithium through long-term contracts but rather buying most of its lithium through the spot market.- In order to boost the sales figures again, some regional governors are now taking the initiative and attracting them with their own subsidies for EVs -
When investing in CATL, one should ask oneself: If CATL bought the lithium at a spot price, it now wants to sell it cheaply to the end customers for themso how much loss do you think CATL will generate?- Battery production decline was 46%-47% in China.---
The new or planned battery factories could now fill this gap and secure a clear advantage over the Chinese side with long-term contracts. Let's see how they see it?
In addition, there is a message that shows that Australia wants to reduce the detour via China (spodumene export) and accordingly carry out the processing in the country.This would further weaken the Chinese market and significantly increase the value of Australian companies.
Abstract : "Mr. Ritoe said relatively complex European permitting rules mean companies will likely have to work with more mining-friendly jurisdictions like Canada and Australia to meet increasing demand for lithium. Meanwhile, new processing plants can be built in three to five years, which is more."creates opportunities for lithium miners."-
As a result, the EU market is clearly coming to the fore for Australian companies.
AKE Price at posting:
$11.88 Sentiment: Buy Disclosure: Held
