RE:Nemaska is NOT Stornoway!it's funny too read the brainwashed, they can only see one way = up
if you allow me to correct you, I could correct you on everything you say but I will only pick on one thing for now...
"More EV sales = more lithium demand = higher prices"
Higher prices = better margins for senior producers = higher production of LI = oversupply = back to lower price of LI
MARKET always finds a MEDIUM Supply/Demand
To think that LI is going to take off ahead of the industry is stupid.
You have to take in consideration not only LI but also Cobalt, Copper, other materials and labor
they all need to find a medium.
the finish product EV price is not based on LI only...there are many metals including silver, gold, oil, copper, labor
All factories need heavy investments to re tool their production lines…this EV thing is not an overnight thing…what you greens are talking about is not as easy as you may think: like it or not but to change from old way to new way means MAJOR destruction in Economies…who will buy an EV if they get a pink sleep from their old job making gas engines, oil refineries, oil transport and a billion other industries that are oil related…
You can’t just switch one ON and the other OFF…
Charlene wrote: I have heard this many times on the board. So, they are both in Quebec. But, Nemaska is very DIFFERENT from Stornoway Diamond. Stornoway was in production and losing money with lower prices on the horizon. At production, Nemaska is project to make $280M each year (assume Li price is $11kUSD/tonne). Even if Li drops another 50%, Nemaska will make an operating profit and generate positive cash flows.
It is also a material that will be in significantly higher demand 2,3 and 5 years away. The recent drop in Li price only serves as an accelerant (catalyst) to generate more EV sales as EV become price competitive with gas-powered vehicles. More EV sales = more lithium demand = higher prices.