For everyone panicking, apply some logic:A) LOW LITHIUM PRICES =...

For everyone panicking, apply some logic:

A) LOW LITHIUM PRICES = marginal supply never comes online, leading to the lowest cost producers being the only survivors and making all the profits in the sector due to economies of scale, go to point B.

B) HIGH LITHIUM PRICES = huge profits for low cost producers, new supply is motivated to come online but takes several years to ramp up, when oversupply hits the marginal new supply gets crushed as the market is flooded with lithium, go back to point A.

Either way, the best tier 1 jurisdiction and cost resources make lots of money over time as iron ore has shown us. the diamond handed fmg investors are very rich.

Just look at coal, it was basically pronounced dead and was going bankrupty and then hit point B with prices that were 10x what it was before. The longer A persists, the bigger B is. If B persists, you can still get supply gap due to demand.

Patient commodity investors tend to have the last laugh.