I believe part of the recent rise post-New year's Day is caused...

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Jehosephat

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10/01/20

12:10

Post #: 42318357
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Originally posted by Ninja Tuna: ↑

exactly GCar
remember that lithium battery plants and also EV manufacturing plants are built and ramped up much faster than lithium hydroxide/carbonate plants and even slower for upstream brine/hard rock facilities.
What will happen is a severe supply shortage 3 years out from now. That supply shortage can not be prevented because it is too late for new mines to come online in time to meet the 115 battery megafactories coming online in the next few years.

Why did Ganfeng rise 112% over the past 12 months when lithium prices were down? It is because Chinese insiders familiar with the plans of the government knew that the portfolio of quality lithium assets that they have been building have almost been completed. Prices were held low to facilitate that process which was inevitable. The Chinese own the lithium market with roots in every quality lithium producer and undeveloped asset.
Ganfeng signals government and true market intention.
Every lithium rally followed Ganfeng’s rise, this time it is exactly the same.

China knew of the shortage so had to buy up every single lithium mine and have stake in every lithium company.
That is why Ganfeng rose when everything else dropped.
Market participants have just awakened to the fact that they have been wrong footed all this time.

not advice

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I believe part of the recent rise post-New year's Day is caused by funds that went light on Li stocks in 2019 and are now re-entering the space, confident that the Li price will recover over the course of this year and allow them to show a good result by year's end.

GXY Price at posting: $1.18 Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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