At the Canadian Investor Conference, held in Vancouver from June 1 to 2, the Investing News Network had the chance to speak with Chris Berry, energy metals analyst and founder of House Mountain Partners.
In the video below, Berry discusses how Elon Musk’s announcement has breathed new life into the lithium junior market, noting that “the automotive business is really the driver for lithium technology.”
That being said, before lithium juniors can really break into the lithium market they have a few things left to prove. “[Lithium juniors] need to prove that they can produce battery-grade lithium carbonate from their deposits; they need to prove that the project is financeable — you want to see relatively low CAPEX and near-term production,” Berry said, adding “if a lithium junior or near-term producer wants to compete with FMC and SQM or Rockwood, for example, they are going to need to prove that they can compete on price, and that is difficult to do in an oligopolistic environment.”
Berry concludes by touching on one company that he is currently doing his due diligence on in the sector.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.