I posted previously about the benefits of vertical integration right from lithium mine up through to EV, when the market is so volatile it’s the only way to secure cost certainty and indeed increase margin at the same price point by cutting out all the middle men. If Tesla maintain their lead in EV’s as is looking likely given their head start, their better motors, better autonomy tech and their cheaper battery tech they’re going to be exposed to lithium price spikes and held to established pricing. Although the posts at 15:23 and 15:24 within the article below are slightly tongue in cheek, Tesla do partner with Ganfeng and might just be serious about lithium acquisitions at the scale of production they’re moving toward - would be tidy if their gigafactory in China (due to start production this year), had secured lithium and batteries for its medium term through direct control... I am joking here, but imagine the fire that would be lit by Tesla buying AJM and or PLS... https://www.teslarati.com/tesla-tsla-2019-annual-shareholder-meeting-livestream-updates/
AJM Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
