2015 - heading towards restarting production and when they finally did spod price when up nicely
Now - we are working on a plan to production for SDV and if BM's forecasts are right when production is in place the price of lithium will be up nicely. But, this time in addition Mt C has the capacity to produce much more, at a higher grade, and at a lower cost than what it could in 2016. So it would be a double bang.
But...... don't forget this all relies in an uptick in the need of batteries. This can't really be the right scenario can it?
It's not like Tesla has asked Panasonic for more batteries, its not like Tesla is creating its own battery production line, its not like Tesla has asked for more batteries from CATL and its not like Tesla has just asked LG Chem for more batteries (https://electrek.co/2020/07/03/tesla-secures-batteries-lg-chem-report/) LOL..... Tesla seems to need every single battery it can get its hands on
It's not like the Zoe is selling like gang busters in Europe, threatening VWs customer base, which will force them to push forward their EV plans and get over their software problems ASAP. The greater the competition the fiercer it will get and the better EVs will come.
As more and more ICE champions face erosion of sales opportunity from well built EV's the more they will scramble and then realise everyone is doing their best to supply Tesla who will be needing pretty much every battery they can get their hands on.
It is at this stage that things will over heat.
Like I said we are still a while off from this, so don't expect anything short term, but if you look at that table I produced when the momentum changes we can all see directly what can happen, plus a little more.
The future is around the corner.
Yes phones only require a small amount of lithium and the quality is not as important. You can throw away a phone in 4-5 years, but not a car.
But...... think about the Tesla semi and the other electric vans coming into production starting in 2021. How many model 3 batteries does it take to make one Tesla semi? Research that and then reflect on what I have said once again. Think about Tesla's plan to substantially increase its storage business and then reflect on what has been said.
For those that can wait accumulating now will be seen as a no brainer in years to come. But patients is needed as its not going to happen today, tomorrow or next week. But when it does............
Enjoy the rest of the weekend.
GXY Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
