Normal
Hard to say what drove this move. Ganfeng and other Chinese battery makers own significant portions of these miners (including some overseas). Some are attributing this to a Chinese car manufacturer acquiring 6 lithium mines in Africa.There is some truth to the Goldman Sachs report - higher prices will obviously encourage more miners to enter the industry and therefore reduce the price, although I doubt we'd have enough miners entering in the next 1-2 years to make a substantial impact particularly when there is now a worldwide target for EVs to outsell ICEs by 2030...The other consideration is that this downward move may be part of a market-wide retreat. 10 year bond yields now approach 3% again. Speculative growth stocks likely to continue to suffer in this climate, particularly when they have no other means for returning value to investors by way of dividends.
Hard to say what drove this move. Ganfeng and other Chinese battery makers own significant portions of these miners (including some overseas). Some are attributing this to a Chinese car manufacturer acquiring 6 lithium mines in Africa.
There is some truth to the Goldman Sachs report - higher prices will obviously encourage more miners to enter the industry and therefore reduce the price, although I doubt we'd have enough miners entering in the next 1-2 years to make a substantial impact particularly when there is now a worldwide target for EVs to outsell ICEs by 2030...
The other consideration is that this downward move may be part of a market-wide retreat. 10 year bond yields now approach 3% again. Speculative growth stocks likely to continue to suffer in this climate, particularly when they have no other means for returning value to investors by way of dividends.
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