General Discussion AGY, page-13176

There has been a significant drop in sentiment towards lithium stocks this year. For an explorer it's going to make it harder for them to raise significant amounts of capital for aggressive exploration. It also removes the urgency to do such exploration. Hence it's going to cause a delay in future lithium discoveries. For wannabe producers it's going to be very hard to find funding especially for those with ambitious CAPEX requirements. They will have to cut back on their production targets, delay their projects or even abandon them. Hence it will delay new production hitting the market.

Lower lithium prices mean cheaper EV prices. Improvements in battery technology producing longer lasting batteries also makes EVs more attractive. Looking forward there’s likely to be even a greater surge in demand for EVs. However, you can’t turn on new supplies of lithium that quickly. Down the track I reckon we see another spike in the lithium price. Which will be great news for AGY who will be producing and probably in the throes of its 10k tpa expansion. Some short-term pain will likely provide some long-term gain for AGY.