They have to get it from somewhere plus de-risk their supply lines. Look at what is happening in Xi'an. Two of the world's biggest chipmakers are warning that Covid-19 outbreaks and stringent lockdowns in a major Chinese industrial hub are hampering their operations.
Samsung and Micron said this week that they've had to adjust operations in the northwestern city of Xi'an, which is experiencing one of China's worst community outbreaks of the coronavirus pandemic. Authorities have responded by enacting sweeping measures with an intensity and on a scale rarely seen since Wuhan, the pandemic's original epicenter.
Any slowdown in output from the city risks worsening the global chip shortage, an ongoing crisis that has limited the supply of everything from iPhones to new cars.
I'm still wondering why Tesla didn't take all of the 10kt. Seems strange. An extra 2kt doesn't matter much in the overall scheme of things. Just need to make sure when they expand to 40kt-50kt we don't get screwed of price. There are a lot of projects beginning to stack-up.
Anode makers are going to need several sources of supply so they don't have to put all their eggs in one basket.
SYR Price at posting:
$1.81 Sentiment: Buy Disclosure: Held
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