History has repeated twice since 2011 not as big but fast run up and fall. What people forget on this board. is there are alternatives. The most obvious example is Grace who made Catalytic covers for Petroleum Cracking. Ce went way up the redesigned there product with a fraction of the Ce and the product lasted longer and did a better job. Ce has never hit its 2009 price since then.
Same is true of motors. They do not need PMs to work. BMW is already selling one BEV with no PMS in motor. Tesla before the 3 had no PMs They used 3 Phase. PM motors are lighter small and more efficient. 15 years ago they were about the same but then massive research was put into them. Much of these improvement was in Solid state electronics and software. Most of this can be applied to non PM motors. If there is a supply disruption than money will flow quickly to non PM motors. If future prices look like they will continue going Higher than money will move non PMs at slower rate. Remember Kerosene replaced Whale and vegetable oil because of supply and price problems. The price has more than doubled in about 9 months from below USD 30 KG. to USD 68. The market can afford this price. If it starts to look like Prices could double again in the next 12 to 18 months I think we will see lots of $ going to alternative motor tech. Remember all the major Car manufactures signed deals with Tesla in 2010 and 2011 to license there non PM technology this includes BMW GM MB and Toyota. All these deal are inactive now. Google any manufacture and Tesla to see the billions spent. Here is a glimpse of the Toyota deal. https://www.hybridcars.com/toyota-and-tesla-team-27971/ All Toyotas E motors were PM before this.
LYC Price at posting:
$6.01 Sentiment: Hold Disclosure: Not Held
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