EV/Lithium, page-575

The world's largest lithium producer, Albemarle, has been absolutely crushed in recent days

https://x.com/minenergybiz/status/1802727204293411127

....ALB is now second to SQM in market cap

.....this is not just uninspiring, it is a death spiral.

.....and just amazing that some ASX lithium hodlers continue to double down, there was once a market veteran commentator whose name eluded me who said 'I'd rather buy a stock on the way up than a stock on the way down'

...."cheap" (as one perceives it) is always cheap for a reason. You can hear them drumming up excuses of stock being shorted, general market weakness and tax loss selling, but the elephant in the room not many are prepared to admit is that the lithium industry is in for a protracted consolidation which I call 'winter hibernation', if it was just a temporary blip, you wouldn't have industry leader ALB hunkering down with mass layoffs, and Buffett reducing his stake in No.1 EV maker BYD.

If you think that "EV is the future" therefore lithium stocks present a buying opportunity at rock bottom prices, then you are simplistically assuming that EV growth must come with Lithium pricing growth. I'd argue that EV growth comes with lower lithium prices staying low for longer. The arrival of a US recession would be the final catalyst or rather the final nail in the coffin to support my 'lower for longer lithium price' argument.

Who wants higher lithium price? Musk? BYD? No, they want lower lithium price. Lithium industry players is now at the mercy of EV producers, 3 years ago lithium players had the upper hand, now is the reversal of fortune.