Totally agree with you that it is time for our Government (and...

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bigjig

925 Posts.

96

02/12/19

15:10

Post #: 41750221
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Originally posted by Finn: ↑

I was reading the other day on one of the other lithium threads, can't think who posted it so apologises in advance. He/she hit the nail on the head regarding the current 'oversupply' of lithium. When you take into account all the billions that has been invested in EV's and the obvious demand for batteries to power these cars. Why is it that the Chinese who can build entire cities in a the blink of an eye, why can't they build a dozen converters to cope with the exponential demand that will surly arrive. Is it by design? Have they allowed companies to build mines, rack up debt and then pull the rug (spot lithium price) from under them. Just so they can swoop in as they did with A40 and pick up prime Australian companies or any lithium company for that matter at bargain basement prices. Reminds me of the old saying, if it looks like a duck, walks like a duck, quacks like a duck, it's probably a duck.

The bottleneck at the converters, creates the 'oversupply' , supposing there were 12, 14 or 20 converters on the go, which by the way are going to be needed, how quickly do you think we would go from over supply to panic that there was not enough supply to fed them.

Hold them tight people, very interesting times ahead.

All imo and DYOR

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Totally agree with you that it is time for our Government (and also the US Government following the critical and rare earth minerals agreement a couple of weeks ago) to start taking, and being seen to be taking as well, a serious interest in the entire battery metals market.

Regardless of whether or not the respective Governments support renewable energy, battery metals are going to play a very significant role in every aspect of the world economy from now and a long way into the future. Control of the chain by any one country or bloc is totally unacceptable IMO.

Short term (by end December), I think a major barometer on what could eventuate in the industry will be whether a deal can be reached between Pallinghurst/Traxys (www.pallinghurst-traxys.com), Quebec Government and other parties to refinance Nemaska Lithium.If no deal can be reached, who will swoop in to clean up the carcase and will the Canadian equivalent of our FIRB step in if required?

MLL Price at posting: 7.7¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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