PINL:SRHYY - Post by User
Post by MaterialsManon Apr 13, 2024 9:06am
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Post# 35987306
Next big thing
Next big thingAI is expected to put significant strain on the grid. Apparently it gobbles up outlandish amounts of juice.
Battery storage should more than take up the slack for weakness in the EV market. GE has built out an enormous battery storage facility in CA, and that is probably just the beginning.
The only question mark for ex-china producers of battery materials is whether or not the the ex china battery manufactures avoid the use of materials from china to help reduce china's stranglehold.
Then of course, there is the issue of simply buying the finished product from china. I don't think there is any mechanism in place to stop that from happening short of tarrifs on chinese batteries. What's the likelyhood of that? That's the wild card.
My guess is that concern for the bottom line will far outweigh any effort to reduce the china's dominance.
Unfortunately, I've been long on battery materials, which has proven to be a nightmare.
I hope my assessment is wrong regarding the dependance on cheap batteries from china, but even if it isn't, IMO it will take a long time for ex-china battery materials producers to recoup.