GREY:LSSCF - Post by User
Post by
goodtoreadthison Sep 15, 2018 2:41am
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Post# 28625340
Aussie board- we are at the beginning
Aussie board- we are at the beginningOf the 45 battery megafactories either in production, under construction or planned, 1/3 of those factories are now in production and expanding. That equates to 15 operational factories in 2018, up from 2 in 2014.
We are at the beginning of this transition (not half way through or the end), thats right, we are at the beginning, and the demand for battery materials aint going away, it will just get stronger as the whole supply chain matures. Its a relative new and small sector, but it is being built out right now, (we know that) thus need to be patient and give it a chance for all the ducks to line up.
We may have to accept lower Li prices in the short term until some of the bottlenecks in the supply chain are sorted. However, there isnt an oversupply or battery material, all product has already been sold on long term contract basis (not just PLS, but all current and near term producers). So, any new supply that does come online is being be scooped up to feed those other 30 battery factories under contruction atm, indicating a tight market, therefore elevated Li prices and not a price crash.
AIMO, DYOR