Lithium outlook 2020: The lithium decade begins. Lithium outlook 2020: Market to rebalance ahead of exponential growth. For the expert (Chris Berry), prices will remain at this level until the excess spodumene that is flooding the market right now gets mopped up - he estimates that will take at least a year. Moores said that the companies that will be the winners in the next decade will be the ones that are tied to the existing industry. "Partners, joint ventures, whatever you need to do to get the experience from the people that (have the know-how)," he said. "Those partnerships are the make or break of any (company that) wants to supply the EV lithium-ion battery supply chain." Commenting on how to approach this season, Lowry said this is the time to put money in lithium stocks. "There's probably not going to be a good opportunity to get high-quality lithium assets as cheap as it is right now," he said. "I think that if you are confident in your ability to analyze future winners, now is the time to put money in - if you believe in the theme, why would you wait?"
'Rising tide' to float all battery-metal boats. Rising electric vehicle [EV] adoption is driving a massive transformation in lithium-ion battery production. Miller estimates total lithium-ion cell production will come in below 200 gigawatt hours (GWh) for 2019. As of January 2019, total production capacity in the pipeline over the coming decade (including projects producing, under construction and planned) totalled 1,550 GWh. By 2028, Miller estimates there will be 2,030 GWh in the production pipeline. Looking upstream at the mining picture, four critical minerals (cobalt, graphite, lithium and nickel) will see demand growth from the battery sector if the 99 planned megafactories come online, he says. Counting supply from existing operations and their expected growth, Miller forecasts the lithium market will move into deficit in 2022. Under a scenario where all projects under development today become producers, that deficit will arrive in 2027. Using the same assumptions, he says the cobalt market will be in deficit in 2020 or 2026, and a flake graphite deficit will emerge in 2022 or 2028.
Some interesting quotes from the experts in Matt Bohlsen’s latest article.
A very Happy Australia Day to everyone tomorrow! And have a nice break from the ASX on Monday. Remember to come back refreshed for the interesting week ahead.
GXY Price at posting:
$1.12 Sentiment: Buy Disclosure: Held
