It has to do with how Indonesia issue their mining permit system for nickel. Simplistically it's like a quota system, you get to mine X tonnes of nickel. The further downstream a company goes in Indonesia, the more likely their permits are to increase and the more nickel they are allowed to extract. This has been evident in the last 12 months during the last couple of permitting rounds. Companies which were mining, processing and shipping MSP/MHP back to China have had their permits reduced, some by up to 30%! While those that have invested further downstream have seen permits increase.
A nickel analyst recently told me that it's only a matter of time before EVs are manufactured there as battery factories are being set up and starting to produce. Investors include Ford and also BYD.
PLS Price at posting:
$1.26 Sentiment: Buy Disclosure: Held
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