RE: Tesla to buy lithium miner18 Feb 2023 09:39
My views on lithium prices for 2023;
A] The market was rocked at the end of 2022 when the Chinese withdrew all subsidies on EV purchases. Vast volumes of EVs were sold during November/December. The demand in January and less so in February plummeted.
March and April should see the return of the status quo, a return to increased sales, and as a consequence higher demand for lithium. In addition, at the back end of last year, the Chinese held large stockpiles of lithium which has now been used, and the Chinese will need to return to the market.
B] The USA has proposed various incentives[IRA} which will help the consumer into the EV market.
C] The EU will be required to lift its game if it wants to stay competitive and assure the population that it has a green agenda.
D] IMO the UK has made a right mess of the green issue, will it backtrack?
E] The sheer volume of new EVs being launched in 2023 will increase the demand for lithium
F] Geopolitics--this is a major factor in the race to secure "white gold" The USA, EU, Russia, and the rest have suddenly woken up to the fact that China is calling all the shots. It must be very difficult to walk in Africa without bumping into a foreign delegation.
G] Non-EV usage, growth will continue during the year especially energy storage. Battery energy is being adopted everywhere.
H] In Zimbabwe, we have a very friendly government that has widely advertised that the country is open for business and will actively support and promote the emerging lithium industry.
We are all aware that the industry can be taken off the rails by events, not within the control of the explorers/producers.
Having said that, the lithium industry looks "comfortable" and ready to seek price increases for its product.
Just my take on the topic.
Acker
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