Good News & Bad News, page-3329

Hello Meetoo,

Nothing wrong with the industry of Li battery. Price shot ahead of supply and being such an efficient industry, the supply all came online almost together. The equilibrium stabilize and require demand to expand ahead or else the out of balance favors the drop in Spod prices. I didn’t think Chinese withdrawal of generous subsidies can have such an impact but throw in a slowing economy with general car sales of ICE dropping MoM this year in China, I didn’t think EV sakes can diverge. Throw in PLS operational issues, customer rejecting their off take volume commitment, design faults of extraction, contractor collapse, cash flow issue, falling Spod prices and any other I have overlooked, the highly leveraged on going concern can rapidly disintegrate. You monetize equity into cash for the purpose of fixing accounting and not growth through big dilution , what do you expect?

Finding a bottom is never easy but I can feel it within the last 2 weeks or so green shoots appearing among a peer.