VIDEO - Emily Hersh: Lithium Investment Paralysis to Continue

A global economic recession could hurt the uptake of electric vehicles, which could slow down the transition to electromobility around the world, according to Emily Hersh, managing partner of DCDB group.

Speaking with the Investing News Network at the recent Prospectors & Developers Association of Canada (PDAC) convention, Hersh talked about the impact the coronavirus could have on the battery metals supply chains.

“We think of China as the world’s factory, everything goes there for processing and manufacturing,” she said. “But when it comes to the lithium market in particular, China is a lot more.”

She added that China is the bank on one hand and a large consumer of electric vehicles on the other hand.

“So the impact of the coronavirus on the lithium space is going to be three-fold,” she said. “As the dust settles and the smoke clears the Chinese government will have domestic priorities … which could impact their overseas investments.”

According to Hersh, the coronavirus has also exposed the lack of resilience a lot of the supply chains have.

“This could potentially lead to a world conversation on whether we want to be dependent on one country for the supply chains we need for the technology of the future,” she said.

Aside from the coronavirus, Hersh said she hasn’t seen any surprises in the lithium market so far this year.

“I think the sort of paralysis of investments coming into the lithium space is going to continue,” she said.

Hersh also shared her insight on new technologies that could impact the lithium-ion battery space.

Watch the video above to learn more about Hersh’s thoughts on lithium, new technologies and supply chains. You can also click here for our full PDAC playlist.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

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.