RE:My take on the recovery of V Further upside over time could come from Larry Fink's infrastructure push by capital markets. They are claiming to be ushering in a golden decade of infrastructure development, and V demand could be impacted as a result. V prices are cyclical. One minute, Largo is cutting costs and struggling to survive (not really struggling with $42 million in cash and $137 million in current assets with a new imminent revenue stream in ilmenite); the next, they are paying all of their loans in a short period of time. --Tis the nature of the volatility of V.
China's property sector should stabilize soon after stimulus, which Bloomberg said was bigger than they previously thought. China's people are big savers; the country is nowhere near defaulting, as Xi repeatedly points out. Exponentially increasing VRFB demand is already occurring (2021 2%, 2022 4%, 2023 first three quarters 8% of total V demand); V prices would have gone lower without VRFB imo. Alberto Arias expected a 30% market share for VRFB grid storage over time based on chatter from local Chinese companies.
Sure, there's plenty of competition, namely from iron flow batteries, but they're also of lower energy density than VRFB and less efficient. You get what you pay for. LCE VRFB has patented technology that achieves 5X the grid storage of other VRFB systems. With the extremely massive grid storage required over time, I feel that there will be room for many players. If I were a grid company that wanted a great battery, I would go VRFB, because it's like buying the Mercedes while iron flow is the Honda.
In my experience, it's best to buy before the runup; that's where the money is made. If investors wait to long, these prices will bounce back up before they can act. No risk, no reward.