Good News & Bad News, page-8756

Its a good question, there are 2 ways to look at it,

First up, sales of end product can only grow as fast as it can be supplied. Over the past month or so, some analyst have reported "demand destruction" scenarios, where there is demand for the product, but its not economical to continue selling that product (i.e. mass market small and low margin EV's), due to high battery metal prices and other inputs.

As an example, if at the start of the year the market was pricing in a deficit of 100kt of lithium (LCE) units to meet forecast end product demand for the year, and if 75% of said deficit is filled from the expected and probable supply coming online, lithium prices will adjust accordingly, pricing in a 25kt deficit.

The auto OEM's will be left with no choice but to downgrade their EV sales forecasts, another demand destruction scenario, slowing the transition down.