Good News & Bad News, page-6800

Don't usually double post, but hey its Fathers Day.

Yep, basic logic at play. More EV's sold = more EV's produced = more lithium needed = more spod needed = higher prices needed cause only those that can afford to ship are doing so now. As I suggested before, I will be very surprised if we don't see the start of noticeable movement upwards by the end of November. Everyone just needs to remember that in Q4 2020, Tesla alone will be producing more EVs than 1H2020. 2021 will be a great year.

Happy Fathers Day to all the dads out there. Hope your having a great one!

JL has made another article and I know there are components that we could argue about, I just want to highlight the ones that we don't need to argue about. The ones that are important for the sector and will make a positive difference at least:

- Based on lack of investment it is already too late for the lithium industry to support demand of 1,000,000 MT by 2025/26

- WA Spodumene oversupplymoves to tightness then short supply within 12 to 18 months moving the right-hand side of the lithium chemical cost curve up ~ 30%. Before the end of 2022, China spot pricing for battery quality lithium carbonate and hydroxide will exceed contract pricing in Korean and Japan which will increase more slowly just as it did in 2016 – 2018 returning to the mid-teens. Delayed investments in chemical capacity will create a great pricing environment for all lithium chemical producers that could last beyond 2027 depending how much longer investment is delayed.

- Conversion capacity in Europe is starting up by 2024 with feedstock from Australia giving companies like Pilbara and Altura more partnership options.

- The Atacama struggles to reach 200K MT of production with less than 75% being battery quality, a far cry from the 400K MT forecast just a few years ago

- By 2022, at least two large multinational companies not currently involved in lithium make significant investments enabling the industry to catch up with demand by 2030

Add all this information together and we do have ignition. We are currently doing system checks and preparing for lift off. When weather conditions align there will be a sector wide lift off. Question is to all holders and potential holders, are you ready for lift off when that happens?

We have all waited for the stars to align, everything appears that they are about to.

Short term - DYOR!