Lithium consultant Rodney Hooper talks about the main trends in the lithium space and what investors should look for when choosing stocks.
The electric vehicle (EV) revolution is considered by many to be the mega trend of the next decade, with analysts agreeing that demand for battery metals such as lithium will increase significantly in the coming years.
Rodney Hooper, lithium consultant and co-host of the Lithium-ion Rocks! podcast, sat down with the Investing News Network at Benchmark Minerals Week to talk about the main trends in the lithium space and where the industry is going next year.
“From China’s (EV) perspective there’s been surprises on the downside,” he said, talking about the recent cut in subsidies and its impact on sales. “On the flip side … it looks like Europe is picking up the slack and that has surprised me on the upside.”
Speaking about the current state of the lithium space, Hooper said the market knew the concentrate of spodumene from Australian producers was going to be more than sufficient, but oversupply was greater than what he had expected.
“We’ve also seen Albemarle (NYSE:ALB) and Tianqi Lithium (SZSE:002466) pulling back from potential expansions in the near future. The industry has reacted very quickly, but the pullback has been severe.”
Hooper also talked about what he expects for the lithium market around the world next year.
“Next year I am expecting that China will hold on its subsidy cuts beyond what they’ve done, so hopefully they will delay that and we know that in Europe the model and expansion is really gaining momentum.”
The lithium consultant also shared his tips for investors looking to jump into the lithium space and what to look for in a company operating in this space.
Watch the video above for more of Hooper’s thoughts on EVs, demand and supply of raw materials and what’s ahead. You can also click here for more video interviews from Benchmark Minerals Week.
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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.