Li-related News/Articles/Reports, page-8137

“And with such slim margins available, how do you figure AGY will attract several hundred million dollars of investment to expand and achieve profitability, when the world's largest operator can't manage the same feat?”


As per the Albemarle slide above:

Higher prices required over next decade to support >100 new projects needed to meet demand

The current pricing is not indicative of what lies ahead. It simply does not incentivise new projects at the rate they will likely be required.
As the supply-demand balance tips, pricing increases. Economics 101.
Albemarle’s “100 new projects” comment is referring to the circa 2Mtpa of additional supply likely required in the coming decade; hence the “100” new projects, each averaging 20ktpa.
The cost curve tells us that unless many can magically reduce their costs, significantly, then pricing must rise to enable them to be built.

You know all this, and imo it is disingenuous of you to suggest/imply that AGY can’t move forward just because the big dogs are currently near break-even.


It will likely be a couple of years until our expansion is built, afaict, and then some time to get it humming along….
Iirc, an average $25k/t pricing scenario indicates circa 45% IRR for AGY’s anticipated operation.

DYOR