I don't think the car manufacturers can afford quality issues either - all ok to source Li from cheap suppliers (at this stage most of whom seem unidentified?) but make a few bad batteries from some junk material and your brand will unwind pretty quickly.
Also keen to see how much of the futures material actually eventuates. This could wind up being a huge con imo- All this increased supply from mines built & commissioned in less than 12 months in various dubious locations.
I accept China have mining expertise and can get things done quickly - but this is tempered by a history of producing sub standard products on the fly to meet a new/ current demand.
Plenty of Chinese products I have bought over the years ended up in the bin after finding them not fit for purpose leaving me wishing I had bought the right thing in the first place.
It will be a juggling act to get this balance and I still think that ex quality producers may get a premium price for guaranteed quality product.
Also not sure of the chemistry- maybe it's possible to shandy/mix product to achieve a desired quality.
It definitely appears that sub $1000 pricing isn't sustainable.
In my view a swinging pendulum tends to over correct so maybe we see a period of dramatic price increase to match the sharp decline.
Revenue should stabilise once ameliorated over a few years - boom and bust cycles are pretty typical in my industry but the long haul pays - provided you can carry the downs - and a couple billion $$ in the bank def helps with that.
I have to say that I have been enjoying watching and learning about this industry and the markets in general and I'm still a bull on this even after the last 3 months.
I honestly can't find enough facts to support some assertions by big business and when they are co-owing & buying in at relatively high prices (compared to me anyway) you have to ask why
PLS Price at posting:
$3.71 Sentiment: Hold Disclosure: Held
(20min delay)