The Conversation (2)
Last week, Chris Berry of the Disruptive Discoveries Journal looked at the idea that the lithium market could be headed for a bubble. While he stressed that there is no hard evidence of this yet, he argued that “approaching the space with this in mind is constructive.”
Last week, Chris Berry of the Disruptive Discoveries Journal looked at the idea that the lithium market could be headed for a bubble. While he stressed that there is no hard evidence of this yet, he argued that “approaching the space with this in mind is constructive.”
As quoted in the post:
The lithium market isn’t a bubble. Not yet. Nevertheless, it looks like current and aspiring raw material producers are about to get their day in the sun as costs for technology necessary for electrification (batteries and solar panels, for instance) continue to crash. This is the “good” deflation we have spoken about so frequently. In an otherwise horrendous year for hard commodities, lithium has, and should continue to, outperform.
It would appear that those companies that can demonstrate lowest cost production coupled with strong strategic partnerships are best positioned to move higher as the electrification thesis plays out. We think it is early, but the lessons learned from past bubbles (uranium or rare earths, for instance) shouldn’t be forgotten.
