https://x.com/CarlCapolingua/status/1824397856305758266 …the...

https://x.com/CarlCapolingua/status/1824397856305758266

…the decline in lithium price is accelerating.

…if demand is healthy, then there must be overcapacity and oversupply, if there is no oversupply, then demand could be falling. Or very possibly demand is falling while supply continues to rise, which explains why prices keep falling.
….every lithium producer is trying to optimise and reduce production cost by producing more at lower margins to keep operations going.

…as for lower price solving low price problems, be aware that the main EV battery producers are vertically integrated, their lithium operations don’t have to be profitable to continue operating. South America and Africa will continue production as the emerging economies see lithium as their foreign exchange earners, they are not accountable to their shareholders to maximise profits the way ALB and ASX producers need to.

…lithium stocks are poor risk reward because they don’t rebound even as US stocks staged a good recovery. But when overall market falls, they fall even harder.