Some talk recently of Li prices and Spod prices to normalise -...

Some talk recently of Li prices and Spod prices to normalise - however what is normal?? New industry, new products where demand will outstrip supply for the foreseeable future.

- I like the analogy that demand is a car traveling at 60km/h and supply is one trying to catch demand traveling at 55km/h, at any point in time in the future the gap widens from the initial point in time. And the current Initial point in time with the current demand/supply curves that underpins the spot price were getting now - 6% @ $US7000/t. So as the gap widens - in what Bizzaro world does the price of Li/Spod come down??

The race is on for downstream EV makers to gain market share- its a war - survival of the fittest smartest, those with the smarts have secured Li supplies. Li and battery metals are the key!

Remembering also that ESS has been reported to be even a bigger market for Li than EVs.

Producers such as PLS are at the right place at the right time where continual unprecedented demand is set to keep prices high, We now enters a golden (white) era where, with every BMX auction, dishing out crumbs of Spod to the starving masses of Chem Converters/ EV makers in the hope they can securing enough Li in the race to stay alive and transform from ICE to EV and or gain market share.

Time will tell if Spodumene pricing will come down, however right now I don't see any reasons (including a recession) that it will any time soon.

IMO, my best guess - PLS SP to reach ~ $6.60 sometime in 2023 simply based on our earnings.

Good luck all.