US Fed upcoming tightening monetary policy does influence broad...

US Fed upcoming tightening monetary policy does influence broad market sentiment.
I expect that would cause short term to medium term market volatility, likely to be a bumpy ride for broad market, US probably would be experiencing a correction, but not a crash, because Fed is still flexible and pandemic is not over yet. They can't afford any market crash. That gives me confident for holding lithium stocks especially quality ones as electric vehicle revolution is coming faster than expected.


Not all sectors win during interest rate hiking cycles, Goldman Sachs cautions.

Macro factors seem okay to me, then needs to assess lithium sector outlook,

Lithium sector is highly related to EV mass adoption.
EV mass adoption is led by China. China accounts for 50-60% of the global market.
Firstly, China government is pushing for EV mass adoption although reducing subsidy but governments are still having different incentives including local government subsidies to push mass adoption. China government aims to develop auto making industry as this EV revolution is once a century opportunity for China to lead the sector;

Secondly, China imports 11 million barrels crude oil per day to meet domestic cars consumption. China crude oil import dependence is also around 80%. Similar to iron ore. And now lithium import dependence is also at around 80%. 11m barrels per day, that's US$940m per day importing.
China doesn't want to heavily rely on growing crude oil demand, mainly from growing annual car sales.
Worsening environment pollution in China, is also another factor to drive EV adoption, imo.

Back to GLN, Canaccord used very conservative assumptions, high discount rate 10%, low lithium carbonate price US$15,000/t, high risk adjust ratio, still value GLN at $2.80/share.
Currently China lithium carbonate price fetches US$53,000/ton, more than 3 times of Canaccord's price assumption. BTW, Canaccord initial research report pointed out, based on lithium carbonate price of US$27,000/ton, GLN valuation will be $6.00/share.

Also, institutions have been accumulating GLN shares over last few months, even at $1.90-$2.0 level.

All imo.