Banter and General Comments, page-13266

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zidane123

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09/01/20

11:04

Post #: 42298111
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Originally posted by Darkstone ↑

Everybody's batteries use very little lithium. Not just Tesla's. That's kind of the point.

It's the reason why Lithium can double in price with virtually no impact on battery cell cost. So the need to have cheaper batteries does not impact the likelihood of Lithium rising in price. It's actually a good thing, because while there is a lot of lithium around there is very little battery grade lithium that is economic to extract and refine, and it takes years to start up and tune a lithium mine, so as this down cycle ends - as it appears to be doing now - there will be a long period where battery grade miners like GXY will be making huge profits. Particularly since during the downturn the best miners, like GXY, learned how to reduce costs and optimise their mines so they could keep making profits at low prices. So with rising prices they will be making even more profit than they made in the last cycle. Meanwhile there has been practically no investment in new mines for 18 months, leaving an 18 month gap in the ramping up of supply competition.

Thanks for helping me make my point.

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"It's the reason why Lithium can double in price with virtually no impact on battery cell cost"

If the price of lithium becomes very high, then wouldn't the sale price of lithium would be high as a result. So other companies like Tesla buying the lithium would need to pay more for that lithium. How does it not affect battery cell cost later on in the supply chain?

GXY Price at posting: $1.12 Sentiment: Hold Disclosure: Held
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Banter and General Comments, page-13266

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