Keep your panties on people. With the spot price down a bit for a variety of reasons, I think it's pretty normal we are seeing some Li stocks retrace on no news. As the factories impacted by the current Shanghai COVID lockdowns come back online, prices should rebound, but I would not be shocked if they fell further first. This could take a while to play out.
SHANGHAI, Apr 13 (SMM) - The domestic lithium carbonate market saw a supply gap of 95 mt in March. China’s lithium carbonate output stood at 26,178 mt in March, up 41% MoM and 43% YoY. In March, smelters returned to normal production, and the release of new capacity ramped up. However, the increase in demand failed to catch up with growing supply. The supply slowed down in April due to brief maintenance of some smelters and raw material shortages. In light of falling downstream demand, the market may shift to an oversupply in April, which is expected to result in slight downward corrections in lithium carbonate prices.
SHANGHAI, Apr 21(SMM) - Tesla CEO Elon Musk has publicly called for greater investment in lithium mining to fill the huge supply-demand gap created by the popularity of electric vehicles. He said battery production, more specifically lithium, is the "fundamental limiting factor" in the adoption of electric vehicles globally, "We need to help the industry in this regard, and I would certainly encourage entrepreneurs who are looking for opportunities to get into the lithium industry. Lithium’s profits are now almost equal to software profits.”
We the LTHs are the entrepreneurs Elon is looking for.
I'm guessing we won't see a ML until at least the end of the month with key people being on the road. Once news starts flowing the market will be drinking from a fire hydrant and it's going to be awesome to watch.
AVZ Price at posting:
$1.11 Sentiment: Hold Disclosure: Held
