From a JL LinkedIn post. The narrative from China about weak...

From a JL LinkedIn post.

The narrative from China about weak #lithium demand runs counter to the reality of battery GWH growth. One only needs to look at Andy Leyland’s FM presentation or many other data sources on GWH growth to realize demand isn’t “soft” or “sluggish”.It is also pretty well established that Chinese companies like #Yahua are having issues with their projects in Africa. The word of unidentified traders on price has always tended to get too much attention.As long as China controls the market they may control the narrative too but you may want to take another look at the story.If we are in a massive oversupply environment, why are we nowhere near the sub $4,000/MT prices that both SQM & Orocobre received for carbonate at various times in China during 2020? Part of the reason is the China/Africa swing supply is much higher cost than world class brine supply but another factor is that excess LCEs on the ground in China in various forms don’t equal battery ready product in inventory so the “oversupply” is exaggerated. These factors coupled with the willingness of CATL and others to operate some lepidolite capacity at a loss are keeping global prices down, at least temporarily. The current price dynamic is unsustainable in the long term albeit painful for many in the short term.