Good News & Bad News, page-25172

My brother in Christ,

While I understand your skepticism surrounding the current lithium market - there's a considerable difference between healthy debate and constant downramping. You've advised you believe a fair T/O offer of PLS to be $2.50 (FCF alone is churning 74c/share on long term contract pricing) and spruiked a complete crash of the lithium commodity market.

While lithium may indeed underperform in the immediate short-term due to China's interference in the market economics - much like their forays into the iron and coal markets when they got sick of paying a premium - these effects are expected to be short-term in nature.

EV prices are slowly decreasing as car manufacturers become more efficient in their builds, Tesla is promising a range of up to 10 different car models catering to the nuclear family model with heavily reduced upfront costs. If the war in Ukraine has taught anything it's that diesel and petrol are not immune to the effects of supply shortage and inflation - paying $2.50/L for petrol over a few years more than offsets the upfront costs of EV ownership.

Thank you for your efforts in generating discussion, but please try and keep the content constructive and try to consider multiple viewpoints on the lithium markets, the common 'consensus' from these 'experts' appears to be that there will be an uptick soon. Perhaps not back to record levels, but as proven by CATL you can't maintain 250,000 yuan levels and remain profitable based on current battery technologies. And as far as low-cost producers go, much like FMG for iron, PLS is capable of weathering significant drops in spot price and remain immensely profitable.