Neo Lithium Corp NTTHF

RE:Why mining companies expand during "oversupply"?

[LithiumNPV]

supersceptic wrote:

1. Oversupply is real and it suppresses Li prices and Li miners s/p.
2. All major company planned to increase production, though some delays due to Li price drops are considered
3. This is absoultely abnormal behaviour for conventional mining (copper).
4. The reason is that prices for Li looks cyclical (like in copper case) but demand is not.
5. The answer is in the link below, new production is rational behaviour to meet new demand:

https://www.visualcapitalist.com/battery-megafactory-forecast-1-twh-capacity-2028/

NLC and other new entrances will be needed and low cost supplier like NLC will be luxury soon.
It will be cool to have schedule of new Gigafactory opening, with it we will see when new monster start siphoning supply.
If VC is correct, 7.3GW in average should be added every month, between 2018 and 2023.
VC, also assumint that Latin America and Africa won't add any capacities. Most, probably, will lag, but I won't be surprised if Mexico will became manufacturer too.

Sounds like an oversupply of battery makers. Lithium demand is growing but from such a small base. Hence the oversupply out to 2027.