PLL Q3 Results, page-30

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FrankRockefield

1,350 Posts.

1802

11/11/23

21:34

Post #: 70850000
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Originally posted by lesv: ↑

that’s the big question , if only we knew, my guess is China probably stocked up based on last years growth rates, ev sales are growing significantly but not as same rate as last year, more production has come on line from the likes of pls, pll and most other miners, with the rise in interest rates I suspect the battery chemical companies are destocking and unwilling to carry as much inventory as there is a financial cost holding large inventory with higher global interest rates, and as lithium prices have been falling there hesitant to buy more spodumene than is immediately needed as they expect they can just buy it next week at a lower price so it feeds on itself lower prices drive lower prices, but the lower prices also slows down the development of new projects or expansion as companies share price falls it’s harder to raise capital and to expand or bring on the capex for new projects, I see it as good advantage for current producers if ev demand and grid storage demand keeps growing at current rates. Short term it doesn’t look great but long term I suspect the cyclical nature of spodumene prices rising will return I suspect demand will return when the North American battery plants start getting into production and North American car manufacturers start catching up to the China ev manufacturers , currently China drives the lithium demand but this is slowly changing as battery and ev car manufacturers start increasing in Europe and America, just my 2 cents worth on how I see things today

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EV's growing faster than last year:

Last edited by FrankRockefield: 11/11/23

PLL Price at posting: 42.0¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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