Lithium Prices Bottom is in!, page-7

STOC.....this morning.
Lithium juniors say a wave of stunning mergers and acquisitions led by the industry’s biggest players are an indication they see prices staying higher for longer, as majors look to fortify their stronghold on the supply of the key electric vehicle battery ingredient.In the past two months Australian developer Liontown Resources (ASX:LTR) has rejected a $5.5 billion bid from American lithium chemical giant Albemarle, rich-lister Chris Ellison and his miner Mineral Resources (ASX:MIN) have scuppered a $136 million bid for Norseman tiddler Essential Metals (ASX:ESS) by IGO (ASX:IGO) and its Chinese partner Tianqi, and Allkem’s (ASX:AKE) landed a $16 billion merger with Livent.Delta Lithium (ASXLI) executive chairman David Flanagan, whose company controls almost 13Mt of spodumene resources at around 1.2% Li2O at the Mt Ida project in WA, says the consolidation push will give more pricing power to lithium producers already seeing high prices as demand from EV and battery makers outstrips supply.He noted lithium chemical prices in China have climbed for eight straight days, after falling by more than 50% from highs of ~US$80,000/t to under US$30,000/t over the first four months of 2023.“There’s massive volatility and there’s also a massive amount of lithium clickbait out there. So the world’s really interested in what happens with lithium and everything that happens to the price – up or down – is massively amplified,” Flanagan told * on the sidelines of the Resources Rising Stars Conference on the Gold Coast yesterday.“Actually, I reckon there’s a lot more good times to come. I think there’s a lot less supply coming online than people think.“I think there’s going to be consolidation in the sector, which is going to drive more anxiety on the customer side. And I think that if you have a smaller number of parties controlling more of the product, you’ve got more likelihood of having high prices.”

With SP so low, Lakers should not fear CRs but be MIGHTY scared of M&A. And SO SHOULD SHORTERS. M&A's come out of nowhere, any time, any amount!!!! Watch that space.