VIDEO - Howard Klein: Investor Sentiment Needs to Decouple from Lithium Price

Before the COVID-19 coronavirus outbreak, sentiment toward battery metals was positive, and right now there’s a general “risk on” attitude in the markets, according to Howard Klein of RK Equity. He is also co-host of the Lithium-ion Rocks! podcast.

Speaking about the impact that COVID-19 could potentially have on the lithium space, he said it will slow down demand in China in the short term.

“The number one takeaway from this is that reliance from China from supply chains is more of a worry than ever,” Klein said at this year’s Prospectors & Developers Association of Canada (PDAC) convention.

“The world needs supply outside of China … more attention is going to be paid to US assets and Canadian assets,” he continued.

Klein also touched on what he expects to see in demand for lithium in 2020.

“This year might be a little bit worse than expected from a demand side,” he said. “But I am hopeful that sentiment is decoupling from price and people are starting to see and understand that with a 2030 vision we are going from 300,000 tonnes to 2 million tonnes of lithium.”

Klein also talked about his portfolio and companies he is investing in right now considering the current state of the market.

“I am most focused on which are the companies that are underpriced but are still in advanced development, that are going to bring in production in 2023, 2024, 2025, and that are differentiated and underappreciated.”

Watch the interview above for Klein’s thoughts on lithium prices, which stocks he likes right now and what’s ahead in 2020. 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.