Quote from the video by Ford CEO:
"If we don't make this EV transition, Ford is not going to make it"
..yes, if Ford and US auto makers don't, eventually the Chinese will eat their lunch.
..yes, the Americans will eventually get there, but at this point they're bleeding from losses on their EV business, and they're public listed company, they have to look after their bottom line.
..so lithium demand will be there, except there's uncertainty as over time there could be less lithium going into each EV battery going into the EV, and there will be a lot more supply, and the entire lithium sector could be commoditised so there is less price fluctuation with price stability at lower price ranges, and lithium price would never recover back to those crazy heights of 2020-21 again. Lithium stock mean reversion is nothing about no or less demand for EVs or no or less demand for lithium; it is about valuation premiums declining from lofty levels premised on strong y-o-y EV and lithium demand growth (that was expected) and the very elevated lithium pricing then (which has since fallen by 80%). Lithium stocks that could trade well beyond 40x PE because of exceptional growth expectations must see a PE contraction over time to reflect a new normalised growth and profit base.
...and that is what it is about. And IMO the sooner people realise that, the better they can protect their gains and investment from suffering a fate similar to RHC or at worse APX.
