If we believe in the economic laws of supply/demand, then the drop in prices for Li hydroxide and carbonate would IMO be due to a reduction in demand for these chemicals. So, the chances are that there is not enough demand from the cell makers to take up available supply. We know Li hydroxide has a short shelf life so obviously the production of hydroxide would try to keep in step with demand. It seems therefore that cell production needs to increase in order to:
1. Increase battery production and address the shortages claimed by Audi and others; and
2. Increase demand for the battery chemicals.
When that happens, and it can happen quite quickly, there will also be an effect on upstream suppliers of raw materials, which, if it does happen quickly, as I believe it could due to the "lumpiness" of demand when any new production comes on-line, the price of spodumene will also spike up.
I must say that I DO believe in the accepted economic behaviour of supply and demand and its effect on price.
All IMO and please DYOR and good luck to all holders. Cheers
Benchmark Intelligence Lithium Research, page-26
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