I hope Benchmark Intelligence report in June will provide a better picture on lithium prices and future demand.
Between 27/05 - 31/05 BI will conduct field trip visiting number of spodumene convertors in China including Jiangxi Special Electric Motor.
Since our clients have their clients and their client have clients too, etc. and with number of confusing report it is hard to worked out which part of the whole process from spodumene to EVs is not moving fast enough.
Converters don't want to ship agreed amounts of lithium due to lower prices (?) or lower demand (?) for their products and then Audi is delaying production of new model because they fail to secure supplies of batteries.
Or (on speculative side) is a goal of other lithium uses to create artificial low demand for lithium, getting some of Australian miners/advanced explorers to struggle to "help them" later with cash by acquiring stake in each company or offer long term agreements at cheap prices?
Debts, loans repayments, production cost etc of ASX lithium miners is a public knowledge so is easy to worked out who would be desperate to accept lower prices to survive.
Regardless of current reasons, I am convinced that EV revolution is too far advanced to be ignored and the current bottleneck in processing will end delivering nice return to those who are game to invest in A40 at current low prices.
Hopefully BI report will provide a better indication on time we need to wait for turning point as I do trust their assessment more than another lithium "gurus".
A40 Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
