LRS General Discussion, page-14607

The statement that lithium is entering oversupply is based on the current state of the lithium market and the expectations of some analysts. However, there is no consensus on this issue, and other analysts believe that the lithium market is still undersupplied.

Here is a summary of the arguments for and against the claim that lithium is entering oversupply:

Arguments for:

• There has been a significant increase in lithium production capacity over the past few years.
• The global economy has slowed down, which has dampened demand for electric vehicles and other lithium-ion battery-powered devices.
• Chinese electric vehicle subsidies have been declining, which has also reduced demand for lithium.

Arguments against:

• Demand for lithium is still expected to grow significantly in the coming years, driven by the increasing adoption of electric vehicles.
• There are some bottlenecks in the lithium supply chain, which could limit the ability of producers to meet demand.
• Some analysts believe that the current oversupply of lithium is temporary and that the market will return to a state of undersupply in the next few years.

It is important to note that the lithium market is complex and constantly evolving. It is therefore difficult to make definitive predictions about the future of the market.

Based on the information available, I would say that it is too early to say definitively whether or not lithium is entering oversupply. However, it is a possibility that should be taken seriously by all stakeholders in the lithium market.

As for the statement that non-miners, such as LRS, are not building new lithium mines, this is also true to some extent. However, there are still some non-miners that are investing in lithium mines, such as Piedmont Lithium and Ganfeng Lithium.

Overall, the situation in the lithium market is uncertain. There are both arguments for and against the claim that lithium is entering oversupply. It is important to monitor the market closely and to be prepared for the possibility of both lower and higher lithium prices in the coming years.