Good News & Bad News, page-10320

Yes I agree that emotion should always be taken out of a stock when deciding if you want to buy, sell or hold it.

The thing that concerns me is that clearly there currently appears to be a shortage of Lithium batteries so its reasonable to assume that the battery manufacturing plants are likely all running at full capacity to keep up with demand.
That should mean that the lithium price should be jumping to pretty high levels but it isn't which suggests that there is more than enough Lithium currently being produced to satisfy current demand.
Battery production is clearly not being held up by a lack of Lithium supply otherwise PLS would have sold a lot more to China over the past 12 months and the lithium price would have reflected the shortage in supply.

To cope with the expected continuous increase in demand for Lithium batteries many new battery manufacturing plants will be built over the next few years.
The issue is which will be built the quickest, will it be the new battery manufacturing plants or will it be the new lithium mines that are close to starting up production and the existing mines such as PLS which are looking to ramp up production substantially.
If the new battery manufacturing plants get built quicker the Lithium price will increase but if they are not the lithium price will stay around current levels for quite some time.