...as I had stated, the large lithium producers know their growth hinges on producing more lithium, not counting on lithium price gains.
...there may not be lithium supply deficits for years to come, because (1) EV growth is decelerating, the pullback from original EV plans is very notable, Nissan's retreat being the latest, and there is a sharper focus on hybrids ; the EV industry has enjoyed its early adopters growth and getting into mass adoption requires it to be cheaper and alleviate range concerns (2) the auto industry is facing a sharp slowdown, mass layoffs occurring across auto makers, as the global economy teethers on the brink of a sharp slowdown or recession ahead, with rising unemployment making its way (3) lithium producers and developers would not be able to reduce production to keep lithium price higher because they would not survive otherwise. The lithium product still remains in demand and so they will produce and produce more over time. The largest lithium miners survive, and the industry will finally enter into a brutal elimination of high cost producers and projects that cannot survive on low lithium prices ahead.
SQM 1Q 24 Earnings Call
- Capacity reaching 305 kMT-LCE by end of 2024
- Sales Fcst 2024: 200 kMT SQM ´s low cost position leads me to believe that it will try to sell us much as it can produce.
