Just remember that high prices for a commodity like lithium, especially over an extended period, does two things 1. Increases the amount of lithium coming onto the market from new higher cost sources. 2. Helps make alternate technologies more competitive - eg hydrogen, flow batteries etc.
Lithium is in the strong position today because it was the more mature technology, due to consumer electronics, than hydrogen etc when the push to reduce transport emissions got under way.
My expectation is that hydrogen will find a place in transport, especially with long distance heavy vehicles, shipping and rail. Similarly with energy storage systems, lithium was further ahead on the technology front than flow batteries but I expect flow batteries will find, initially niche, markets (eg Redflow ASX:RFX) before replacing lithium in larger scale energy storage developments.
I have quite a large percentage of my portfolio tied up in ORE but once we get to around $10 I will start to reduce back towards 10%-15% and move into alternative technologies as they mature and their place in the pantheon of technologies becomes clearer.
ORE Price at posting:
$6.62 Sentiment: Hold Disclosure: Held
