Neo Lithium Corp NTTHF

Why mining companies expand during "oversupply"?

[supersceptic]

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.

[Papino0]

I agree , another point , is that the sector don't have access to usual financing possibilities. The marijuana had easy financing because everyone knows what's a joint and that there will always have some smoke around, but the EV revolution is more undercover and will take the average Joe by surprise, like the smarthphone.  The Big guys ( banks, funds, OEMs )  will have to make

[JMark80]

Definitely when a solid state lithium battery is proven to be commercially viable. It will happen, question is when? 

[LithiumNPV]

Your desperation avoiding the here and now speaks volumes.

[Eric35]

A goal to sell 5.5 million electrified vehicles has been moved up by five years, from 2030 to 2025. Toyota’s definition of “electrified” includes battery-electric cars, hydrogen fuel-cell cars, and hybrids. Key to reaching that goal will be the introduction of solid-state batteries, which Toyota believes could happen as soon as 2020 — two years earlier than originally planned.

[LithiumNPV]

Everyone knows this already. What people aren't appreciating is as good as the demand is, from a small base, is still relatively small while the miners are producing massive amounts of lithium already and that increase will keep the market in oversupply till 2027 and put pressure on the price of lithium below $5000 LCE. It's the nature of business to weed out the weak hands. Learn the

[supersceptic]

JMark :Definitely when a solid state lithium battery is proven to be commercially viable. It will happen, question is when?" It has been proven in lab condition in Germany. Of course, practical use is superior, but now labs are not like 40 years ago. I worked in Multimedia industry for awhile. Simulation tech. is very impressive and reliable. Batteries are also fraction of cost of EV is only

[LithiumNPV]

There really is an oversupply problem. It is not herd mentality.

[LithiumNPV]

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