Banter and general comments, page-12151

Did someone at GS say there will be an oversupply of Lithium? And the price of it will fall? And Yes, pigs will fly also!

From Nikkei Asia ....
NEVs are what China calls electric cars, plug-in hybrids, and other electrified autos. A rule that took full effect in 2020 requires automakers operating in China to meet output and sales quotas for NEVs. Fueled by government support in the form of subsidies, China’s shift away from gasoline vehicles accelerated.

China sold 3.52 million new energy vehicles in 2021, a 160% surge from the previous year. EVs accounted for 2.91 million—far greater than U.S. sales of fewer than 1 million. China’s NEV sales are expected to reach 5 million in 2022, the equivalent of the entire new-automobile market in Japan.

NEVs made up 14% of China’s passenger car sales last year, according to U.K. research firm LMC Automotive.

Global automakers are betting on higher demand. The Chinese joint venture of Volkswagen’s Audi reportedly won approval in February to build a factory to produce 150,000 vehicles yearly. Honda Motor is pursuing approval for capacity expansion at a joint venture in China.

But capacity is growing faster than sales. Annual production capacity for passenger car NEVs totaled 5.69 million vehicles at the end of 2021, the China Passenger Cars Association said, putting factory usage at 58%.

Auto factories now under construction will have a total passenger car capacity of 10.46 million vehicles, with a majority thought to be for NEVs. Generally, NEV plants come online about two years after the start of construction. Once all these factories are operating, China is expected to reach a capacity of 15 million vehicles.

AND this is only China's EV production.
Otherworld EV producers (Europe, North and South America) are all ramping up new EV buildings and production up to 2025.
Definitely will be a real shortage of Lithium supply in the next 3 years and more.
This will keep the price of Lithium resources definitely HIGH for the foreseeable future!

Nice finish on the DOW and NASDAQ> both up about 3%
Should give CXO a nice start Monday.