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givemethecash

5,277 Posts.

756

03/09/19

19:07

Post #: 40296749
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Originally posted by Kevo88: ↑

What are you talking about an "attack on lithium".... Wow, grab your tin foil hats guys, trust no one!

I avidly support lithium, but at present we are in a bear market, its call the cycles of the economy, this is just the reality of how an economy works. It has no bearing regarding those that will lose trying to ruining the industry. How will oil companies lose out? They still have many a use for oil/fossil fuels not everyone will be moving to EVs as they are played out. Plus most wealthy people would hold the largest number of new investments in new technology. Why would they invest in 1 basket? Doing so is basic investment idiocy. Idiots generally arent wealthy people! As its been pointed out look at Australia, little to no energy policies/strategies.

NYSE: ALB planned 7 conversion plants with PLS and this has been reduced down to 2. When you have the price increase in Lithium people see this as a profit earner. Significant investment followed as everyone foreshadowed continued growth. Now we have received an oversupply stage. This results in a buyers market where supply is competitively beaten down in price against one another.

The next stage if we arent already in it is the crunch stage. IE small players with higher debt and higher cost than larger producers being downramped to sell at below their costs and sell product at a loss. This leads to administration/insolvency/take overs - ASX KDR & A40 comes to mind.

Ultimately this stage will lead to reduced investment as there appears to be little profit to be made in the sector. This will flow onto a demand increase as consumers start to take up EVs due to oversupply and reduced price of lithium flowing through the supply chain to lower vehicle prices. Demand outstripping supply, no new capital investment (no investors during oversupply) and therefore a lack of additional projects to bring on more supply for the demand, followed by a supply shortage.

This is the economic cycle and it will happen all over again.

Less than 1% of all vehicle on the road are electric, scientifically they produce less CO2, exhaustable resources wont last forever, people are becoming more environmentally aware of their impact on the planet. You can either join the revolution or get left behind....

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Look at Australia, Coalition government has openly come out to attack EV and try to rubbish renewable energy (such as the the tesla battery storage success in SA) let alone those in other large economies (Koch), if you think there are no forces trying to erode the new revolution you're very naive - big oil and coal has trillions to lose and they are very powerful and quite easily manipulate the market which is what's been happening, the so called tsumani oversupply of lithium simply is fear mongering. yes the lithium price has collapsed do you really think that simply is because of supply and demand? it aint

Last edited by givemethecash: 03/09/19
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