Banter and general comments, page-3

This is a summary of comments on Li prices from an investment newsletter.

The lithium price traded in China has fallen rapidly. Part of this fall is attributable to local factors. The demand for lithium exceeds the
Chinese market, with big the markets of North America and Europe ramping up EV production. This week one Li company a lithium carbonate price of US$63,000/t CIF for lithium carbonate much higher than China equivalent of US$34,000/t.

Demand for Li was driven up in 2022 partly driven by China stopping EV subsidies for buyers from 1 January 23 which saw higher prices in later in 2022 for lepidolite ore.

Hence, stockpiles of Li built up in China from late 2022 hence the price fall since November. Over the longer term, the sustainability of the China lepidolite mining industry is questionable, both from a cost and sustainability perspective.

Falling Li prices probably created an opportunity for Albemarle to make an opportunistic takeover bid forLTR. The bid is strong vote of confidence in the outlook for hard rock Li.

The TO offer is well timed because many expect prices to start recovering in coming months, the catalyst being yearly growth in Li demand running at 20% plus a year.

Many experts expect the Li market to be mainly in deficit until 2026. While there might be a current oversupply in China, it is built from a low grade, high-cost product. In the rest of the world, there is a deficit of supply.