Good News & Bad News, page-32360

RH must be scratching his noggin, unable to come up with a reasonable explanation for the current mkt dynamic. Perhaps he needs a haircut as his locks are starting to impede his thought processes.

In a time where I've now seen significant issues with ex Chinese rare earths, graphite, and Nickel producers in combination with growing problems in China you would think one of the natural conclusions from RH would be that inventories in China are happily being run down due to lower anticipated rates of production across the battery supply chain. Its quite conceivable that for the past 12mths, EVs are being sold from battery 'inventory' (in effect). The commodity price complex reflects this as they all have trended down.

Let's see if the team provide a steer on this in today's call. Ideally I'd like to see some commentary around lower shipping vols for this qtr, lower anticipated production/shipping for FY24 due to P680 integration, impacts of the chem plant dial-in and ramp up, and current mkt pricing given the last word from DH was that better pricing would be evident in the 2HCY23. I note sc6 pricing has been flat this week, however the print from various PRAs has yet to be finalised.