Wasn't there a "lithium oversupply" that drove countless of...

First 5287 Last

Share
Profile

Follow
remirez

10,431 Posts.

449

01/08/21

23:40

Post #: 54945925
Share

Originally posted by GCar: ↑

“I can’t see China paying $1250 + for FOB sc5.5% for years into the future.”

If that supply shortfall that BMI (and others are starting to recognise) forecast plays out, which shows a worsening shortfall accelerating rapidly from about now, then I can certainly see potential for these prices (and higher) to persist for years more.

As you know, new mines simply cannot be brought online in a year or two. Enough mines that demand will likely require in 2025 need to be starting development NOW; but they are not (nowhere near enough anyway).
BEST-case, imo, is that a genie hands out $20B to miners next year and says hurry up, and we get the supply required in around 2025/26/27...
Likelihood of this is slim-to-none imo, so the shortfall will persist, for most of this decade at least, imo.

Imo this concept of disruptive growth, combined with the harsh realities of the real timing involved with new mining operations, requires some careful perspective to understand just what is ahead of us!

People are typically more used to the concept of expediting manufacturing etc, when you can generally just throw money at something and get it done in a year (think Tesla factories for example). It’s a hard and long game this mining business, especially with the challenges of remote locations, approvals, etc.

Buckle up I say, she’s gonna be a wild ride!

Expand

Wasn't there a "lithium oversupply" that drove countless of lithium juniors out of business and left the rest struggling to survive. EV industry clearly got batteries on the cheap as a result of that carnage and they can weep now as a "perpetual lithium undersupply" comes in to play.

IMO there was never an oversupply.... as a result this is an artificially created undersupply... reap what they sow.

Google it "Lithium Oversupply".... all the way up till 2025.... they shouldn't change their tunes now... lol... Too much too much too much

Last edited by remirez: 01/08/21

GXY Price at posting: $4.66 Sentiment: Buy Disclosure: Held
10 Upvote

0 Great analysis

Reply