There's increasing chatter around strategic investors,...

There's increasing chatter around strategic investors, particularly out of Asia, positioning themselves for lithium offtake and securing supply at what many see as a cyclical low in pricing. This move appears to be a clear example of that trend.If strategics are willing to transact closer to a company’s Net Asset Value (NAV) — rather than today’s depressed equity prices — it presents an opportunity for both the companies and their shareholders to benefit. This dynamic could ultimately lead to a broader re-rating across the lithium sector.NAV, of course, factors in long-term pricing assumptions. Strategics may hold a more bullish long-term outlook, recognising that the supply chain is still immature and likely to face future imbalances — favouring upstream producers. While future price shocks are inevitable, the lithium market will mature, and volatility should gradually taper off.The real challenge for boards of targeted lithium companies is communicating a strong rationale to shareholders for rejecting offers that appear generous relative to current market prices — but are in fact steep discounts to NAV. Only boards with real credibility and shareholder trust will be able to carry that argument successfully.