Lithium from China Plunging / Demand will be from USALithium from China has plunged to 103,900 yuan down 2,400 yuan based on BIDEN tariffs.
Biden is slapping a 25% tariff on lithium batteries from China, up from 7.5%.
Would not surprise me if Biden brings it to 50% in the future, essentially blocking out any lithium battery from China.
Conversely, it means that the WORLD will want lithium from AMERCIA or, they will not be able to sell cars in USA. Europe to impose similar restrictions.
This will block China OUT. China is essentially printing cash to subsidize lithium prices and EV prices. It is unfair as world cannot compete when one prints money.
So tough action is great. This means that in the WORLDS EYES, especially in South Korea that just unleashed a $ 7.5 billion fund to look for lithium around the world, the land and reserve of NILI is becoming PRICELESS.
It is located in a RED STATE, that is going to be tough on China.
I expect that in the 2nd half of this year, two things can materialize:
(a) Major deal with a partner
or,
(b) Buyout at a significant premium to the market
(Graham has said NILI was worth minimum $ 5 per share)
A bidding war is possible for NILI.
Good Luck,