PLS quarterly shows that sales volume was up 9%. So, regardless of the lower price they are still making good money and EVs are being produced. The overall shift in attitude from pessimism to a more steady state of activity is reflected in their results. There is just not going to be enough material available at the moment to support what is demanded. Therefore, current lithium prices are clearly unsustainable for there to be any new meaningful supply, likewise graphite which is needed in much greater volumes.
As of right now, no Korean EV models are eligible for the IRA. Korea is far behind where it has to be in order to compete. Japan and Korea are directly competing for any Tier 1 advanced ex-China supplies, of which there isn't much to talk about aside from RNU. Japan has a trade agreement with the US, but Korea does not. Also, that is unlikely to change over the cause of the year, so their only sure option is to make efforts to reduce dependence on China sooner rather than later because any delay will only feed into the hands of their competitors.
Experts say chances are slim for the US to give leeway on the rules, especially with the upcoming presidential election in November. “The government might say it would ‘consider’ making adjustments. But such policy changes which can be sensitive issues for the voters tend to be made after the election,” said Lee Ho-geun, a chemistry professor at Daeduk University. “Korean companies should make additional efforts to reduce dependence on China for the time being.”
FOMO is with the anode makers.
AIMO, DYOR GLTA(patient)H
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