I just posted this over the road, but also very relevant here:
Sad thing is, the market doesn't seem to be able to do basic maths, and estimate EV penetration growth and Li demand... instead it's knee-jerk and after knee-jerk reaction to a bunch of so-called expert analysts who have proven time and time again that they don't really have a clue as to what is unfolding in this new world of EVs and battery storage...
The sheeple are the ones getting fleeced.
I'm not that bothered by it really, sure it means short-term drops and fluctuation, but in the long run, we will see first hand what such immense technological disruption can do to and at what a swift pace it can do it.
Just remember:
For every 1% EV penetration (~1 million vehicles), there is around 50,000t LCE required.
Take a basic example: India is pushing for 100% EV sales by 2030. They sell over 20 million vehicles per year.
hmmm... 20 x 50,000 = 1,000,000 tonnes of LCE pa right there (and sure, maybe a chunk of those cars/batteries will be smaller, but you get the point).
ooohh, a bit of an increase by SQM (to what, ~200,000 tpa, still several years away) is going to oversupply the market..? As if.
Trust your own analysis people, and remember the agenda of the vultures who profit from the volatility. It will get there no matter what they do, although for some reason, riding the big wave upwards is not enough for them - they want to shake the pool and make a lot of waves on the way there, so they can transfer more wealth from the nervous nellies and impatient ones.
Basic maths..
GXY Price at posting:
$3.49 Sentiment: Buy Disclosure: Held
